One of the biggest stores in Shirley is under threat again after the Ethel Austin budget fashion chain collapsed for the second time in two years.

The future of the 76-year-old discount retailer is uncertain with administrators warning buyers may be hard to come by in the current economic climate.

Ethel Austin, which has its HQ in Liverpool and nearly 300 stores, and its sister homewares chain Au Naturale, appointed MCR as administrator after the business failed to turn around following its rescue in May 2008.

Hundreds of jobs now hang in the balance as MCR seeks a buyer.

The administrator said it could not rule out store closures and redundancies.

In 2008, workers at five Hampshire stores were among 2,500 in the UK saved by a deal with Elaine McPherson, the previous chief executive and joint owner of MK One.

Competition Despite Ethel Austin’s struggles with tough high street trading conditions and competition from rival budget chains such as Primark and Matalan, she pledged to return the company to its “former glory” after snapping up the group for an undisclosed sum.

Stores in Eastleigh and Locks Heath were among 33 closed nationwide, but the chain still struggled.

MCR said recent funding woes were compounded by adverse weather at the height of the January sales.

Geoff Bouchier of MCR said: “There is no doubt 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 funds, which in turn has impacted their ability to generate sales revenue.”

Mr Bouchier said Ethel Austin would trade as normal while a buyer was sought, but added that “in the current economic climate there are no guarantees a purchaser will be found”.