WORKERS at five Hampshire branches of discount fashion chain Ethel Austin are relieved that the company has been taken out of administration by the former boss of clothing chain MK One.

A total of 2,500 UK jobs were saved by the move from Elaine McPherson, the previous chief executive and joint-owner of MK One, who pledged to return Ethel Austin to its "former glory" after snapping up the group for an undisclosed sum.

The Ethel Austin brand will remain intact, but the stores and clothing range are set for a makeover under the new owner's plans to overhaul the business.

Ms McPherson said she would "breathe new life" into the brand, which has branches in Locks Heath, Eastleigh and one of the biggest shops in Shirley High Street.

"I shall be undertaking a thorough review of the business to produce a strategy to transform the business's trading performance and safeguard jobs," she said. "I want to return it to its former glory and that may well involve a revamp of the stores and the product range."

Ethel Austin was put into administration last month after struggling amid tough high street trading conditions and competition from rival budget chains such as Primark and Matalan.

More than 450 jobs have been axed and 33 stores closed by administrators Menzies Corporate Restructur-ing, but today's deal sees the remaining staff and portfolio of about 260 stores transfer over to Ms McPherson.

Ms McPherson headed budget chain MK One until its sale to Icelandic owner Baugur in 2004 for £55m - a deal which netted her and fellow director David Thompson a reported £39.6m windfall for their 90 per cent stake in the group.

Recent reports had suggested that Ms McPherson was looking at buying MK One after Baugur put it up for sale, but retail restructuring specialist Hilco acquired MK One earlier this month.

Ms McPherson said Ethel Austin's budget proposition could fare well in a consumer spending slowdown.

"Despite the current tough economic conditions putting household budgets under pressure, I believe that a combination of quality and great value clothing can make Ethel Austin a retail success story once again," she said.

Ethel Austin was formed by Ethel and George Austin in their Liverpool council house in 1934. The firm, headquartered in Knowsley, Liverpool, had an annual turnover of about £150m in its latest accounts, according to administrators.