Ethel Austin, the fashion retailer which entered administration last month has been rescued by the former chief exec of the MK One chain.

2,500 jobs and 300 stores hung in the balance after the company officially entered administration on 15 April, but Elaine McPherson's offer has been accepted by the administrators.

This morning, Philip Duffy and David Whitehouse, partners from Menzies Corporate Restructuring announced the sale of the whole of the business and assets of Ethel Austin to McPherson.

Duffy said: 'This is a fantastic result for the business, allowing the Ethel Austin brand to maintain its strong presence in the high street, whilst also saving 2,500 jobs.'

The new company will be called Ethel Austin Ltd.

McPherson said: 'I’m incredibly excited to have the chance to breathe new life into Ethel Austin. I shall be undertaking a thorough review of the business to produce a strategy to transform the business’s trading performance and safeguard jobs. I want to return it to its former glory and that may well involve a revamp of the stores and the product range.'

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