Life & Style
Retail Ltd went into administration earlier this month amid press
reports suggesting that owner Elaine McPherson may be involved in a
deal to take the company out of administration for an unprecedented
third time in as many years.
The Union says it is
extremely concerned at the prospect of Ms McPherson being permitted
to run the company again and has also written to Life & Style's
Administrators to request they ensure any prospective purchaser
demonstrates an ability to run the business effectively and can
provide a long term sustainable future for its
employees.
John
Gorle, Usdaw National Officer said:
"Our immediate concern
is to safeguard the jobs of as many of Life & Style's loyal and
hardworking staff as possible and we have urged the Administrators
to keep stores open and allow as much time as possible for a buyer
to be found. However, we are extremely concerned by reports that
the previous owner may be involved in taking the business out of
administration for a third time."
"During the past three
years, Usdaw and Life & Style's staff have done everything
possible to try and help revive the business and make it a success,
yet in return the staff have been treated in a truly appalling and
cavalier fashion. There have been several occasions when staff have
either not been paid or received just a fraction of what they were
owed and most recently the company attempted to slash the pay of
its store managers. This has normally been communicated to staff
with little or no notice and with nothing more than a terse apology
for 'any inconvenience caused'."
"With the best
interests of the company, its staff and our members at heart, Usdaw
has always tried to resolve and deal with these issues through
dialogue and in private, but even this has proved an increasingly
difficult and fruitless task. Reports that Ms McPherson may
continue to be involved with the business really are the last straw
and we can no longer remain silent on the way this company has been
operating."
"Our members tell me
Ethel Austin used to be a fantastic company to work for and that's
why they have remained loyal and continued to back the business
despite the shocking way they have been treated in the past three
years. They are positive the company still has a future but are
horrified at the thought of Ms McPherson returning to run it again
and they can't believe what's gone on is all legal and above board.
As one put it - 'in any other walk of life she'd have been fired
long ago'."
Notes for
Editors:
- Usdaw represents members at the 91 Life & Style
stores that used to be part of the Ethel Austin chain.
- Former MK One chief executive Elaine McPherson acquired
Ethel Austin's debt a month before the company first went into
administration in April 2008. Ms McPherson then bought both Ethel
Austin and sister company Au Naturale out of administration in May
2008. By February 2010 both companies were back in the hands of
Administrators. While in administration, over 200 Ethel Austin and
Au Naturale stores were closed and over 2,000 staff lost their jobs
before Ms McPherson bought Ethel Austin out of administration for a
second time in May 2010. Rebranded 'Life & Style', Ms McPherson
was quoted at the time as saying she wanted to grow the business to
200 stores, but in just over a year the company has found itself
back in administration yet again. Both prior to and subsequent to
Life & Style entering administration, there has been
speculation in the media that Elaine McPherson might be involved in
a deal to take the company out of administration for a third
time.
- Usdaw (the Union of Shop, Distributive and Allied
Workers) is the UK's fourth biggest and fastest growing trade union
with over 400,000 members. Membership has increased by more than
17% in the last five years and by nearly a third in the last
decade. Most Usdaw members work in the retail sector, but the union
also has many members in transport, distribution, food
manufacturing, chemicals and other trades.