ABN pumps more money into ailing discounter
The future of troubled discount fashion retailer Ethel Austin looks to have been secured, after a£5 million cash injection from Dutch private equity owner ABN Amro Capital.
The refinancing package will be used to cut debt and to support store refurbishments under a three-year growth plan for the 266-store chain.
ABN Amro Capital bought 56 per cent of the retailer from Lloyds TSB Development Capital for£122.5 million in 2004. At the time, the discount fashion sector was booming and the company had plans to add another 200 stores to its portfolio within five years.
However, Ethel Austin has been hit by the consumer spending downturn, which has affected much of the sector in recent months. Former star retailers such as Matalan have felt the heat, while QS was forced into administration last week.
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