Ethel Austin, which has 270 outlets throughout the UK and is based in Knowsley, Merseyside, yesterday confirmed that it is moving to Caithness in mid-September although no date has been confirmed yet.

No details regarding jobs were available when the company was contacted by the John O'Groat Journal yesterday although it is advertising for managers and assistant managers at both stores.

Owner Elaine McPherson, the former boss of clothing chain MK One, said: "Having been born in Scotland, I'm delighted to be bringing the Ethel Austin brand to the North of Scotland – and with it a number of new jobs.

"We have a loyal customer base throughout the UK and we are sure the people of Wick and Thurso will enjoy the Ethel Austin shopping experience."

The decision by the company delighted the chairwoman of the Royal Burgh of Wick Community Council, Coreen Campbell.

"It is excellent news considering the present economic climate.

"We were worried that the premises might lie empty for a long time but it is great that Ethel Austin is taking over the stores in Wick and Thurso," she said.

"This will give a boost to both towns and the local economy and will be welcomed throughout the county." No-one from Thurso Community Council was available for comment when the Groat went to press.

The company was founded in 1934 by Ethel Austin in the front room of her terraced house in Liverpool and within five years of going into business she had opened three shops.

Since its humble beginnings 75 years ago the company has grown into a national high street brand name with a UK-wide retail network of 270 stores, employing around 2800 people.

In June 2002, the Austin family sold the business to a management team backed by Lloyds TSB Development Capital (LDC) for £55 million. Less than two years later, ABN-AMRO Capital bought the business for £122.5m.

But last April the business went into administration after struggling amid tough high street trading conditions and competition from rival budget chains such as Primark and Matalan, as well as the big supermarkets.

However, just a month later the company was bought by Elaine McPherson for an undisclosed sum. She set about overhauling the business and promised to "breathe new life" into the brand.

At the time, she said: "I shall be undertaking a thorough review of the business to produce a strategy to transform the its 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."

Ms McPherson, who also purchased 46 Au Naturale stores last year, went on: "This company has always remained true to its northern roots and has never lost sight of Ethel Austin's original goal, to put the customer's needs first.

"With our new image in place and our stylish new product ranges in store, we are still here and are looking forward to 2010 and beyond."

She believes that Ethel Austin's stores' budget prices could fare well in a consumer spending slowdown.

"Despite the current tough economic conditions putting household budgets under pressure, I believe that a combination of quality and great value clothing can make Ethel Austin a retail success story once again," she said.

Ms McPherson and David Thompson owned a 90 per cent stake in MK One and reportedly netted a £39.6m windfall when they sold the business to Icelandic company Baugur in 2004.

Ethel Austin's current range includes fashionable women's and menswear, lingerie, baby, toddlers and kids wear, designer fragrances and home wear.

As previously reported, the Woolworth stores in Wick and Thurso closed in December last year when the popular firm went into administration with debts of £385m. Thirty jobs were lost locally.

The Woolworths company, which was set up in America in 1879 and opened its first British store in Liverpool in 1909, suspended trading of its shares in the London Stock Exchange last November and shortly afterwards went into administration.

g.calder@nosn.co.uk

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