After failing to raise sufficient revenues, Ethel Austin and sister homewares chain Au Naturale, appointed MCR as administrator.

Ethel Austin, which was bought out of administration in 2008 by former MK One boss Elaine McPherson, has almost 300 stores across Britain.

"In the current economic climate there are no guarantees that purchasers will be found", said MCR, in a statement.

The group has been facing competition from its rival budget chains such as Primark and Matalanand and the financial crisis has severely affected its financing plans.

"There is no doubt in our mind that the onset of the global economic crisis has hit the retail sector particularly hard. As a consequence of this the companies have struggled to secure a fund, which in turn has impacted their ability to generate sales revenue", said Geoff Bouchier, Partner at MCR.