ADMINISTRATORS for the fashion chain which rose from the ashes of Ethel Austin said it will continue to trade – but stores are set to close.

Life & Style, which has 11 shops across Merseyside, was formally placed into administration this week, little more than a year after it emerged from the wreckage of the once-proud Knowsley-based Ethel Austin chain.

RSM Tenon directors Simon Bonney, Peter Hughes-Holland and Tom MacLennan were appointed as joint administrators and have started an immediate review of Life & Style’s business.

They said they will keep the business operating – but a plan was in place before they were called in to close some stores and they will keep to that.

It is not yet known which of the firm’s 90 stores nationwide face the axe over the coming weeks.

The business employs around 1,000 people in total and the blame for going into administration was said to be “poor trading” in the current tight financial climate.

In court papers filed at Manchester crown court, the former head of Ethel Austin and current Life & Style director Elaine McPherson signed her name to the declaration: “I hereby do solemnly declare that: The company is or is likely to become unable to pay its debts.”

Ethel Austin and sister chain store Au Naturale crashed into administration last February with debts standing at more than £59m.

Having already bought it out once before, Mrs McPherson “rescued” Ethels for a second time shortly afterwards, picking out and buying back the profitable parts of the business and leaving behind those with huge debts.

The current procedure marks the retailer’s third administration in as many years.