Value retailer Ethel Austin has been saved from administration by Liric, a firm owned by clothing entrepreneur Mike Basso.

Ethel Austin, which plunged into administration for the fourth time since 2008 earlier this month, operated 48 stores mainly in the North and North West of England, the West Midlands and Scotland.

Restructuring specialists GA Europe, recently acquired the debt of Ashloch Ltd, which trades principally as Ethel Austin. Administrators Duff & Phelps have announced the sale of 32 of its stores to Liric. The move safeguards nearly 200 jobs.

The stores will be  handed over in two phases. Some 12 stores were transferred on Saturday (28 July), while the remaining 20 stores will change hands over the next two weeks subject to the satisfaction of certain conditions. Pending the phased handover of the stores to Liric, GA Europe will continue to run the chain and also manage the closure of stores for which a buyer cannot be found.

Commenting on the sale, GA Europe’s Chief Executive Gavin George said: “We are delighted that a buyer has been found for the bulk of the Ethel Austin business, following its restructuring and a short spell under GA Europe’s tenure.”

Duff & Phelps partner Philip Duffy said: “We are extremely pleased to have concluded the sale preserving 198 jobs in the process. Also the sale ensures a future for this well established business.”

The remaining nine stores, as well as the company’s head office and warehouse operations will continue to be traded by the administrators while a buyer is sought.

Earlier this month, the value clothing chain slipped into administration for the fourth time in as many years, putting 500 jobs at risk. The company said the collapse followed a marked downturn in sales caused by the challenging economic climate in the UK.