Troubled high street fashion chain, Ethel Austin, has been saved from closure, it has been revealed.

Last month owners of the discount clothes chain, which has a shops in Chorley, Leyland, Poulton-le-Fylde, Cleveleys, Lytham St Annes, Kirkham and two shops in Blackpool, revealed plans to close 33 of its UK stores.

Although administrators for the bargain retailer, Menzies Corporate Restructuring, said the Preston store in Friargate would be one of 17 to close nationally, with 33 Preston jobs axed, no decision had been made on the future of the other north west branches.

But yesterday it was revealed Elaine McPherson, the former chief executive of the Mk One clothes chain, which has a branch in The Mall St George's, Preston, has bought the whole of the business and its assets for an undisclosed sum.

Phil Duffy, of Menzies Corporate Restructuring, said: "This is a fantastic result for the business, allowing the Ethel Austin brand to maintain its strong presence in the high street, whilst also saving 2,500 jobs.

"Ethel Austin is a big name in the value clothing retail sector and we're delighted to see it acquired by such an experienced retailer."

A review of the new company, Ethel Austin Ltd, will now take place, its new bosses said.

Elaine McPherson said: "I'm incredibly excited to have the chance to breathe new life into Ethel Austin. Despite its obvious trading difficulties and the recent regrettable loss of jobs and store closures, Ethel Austin remains a great value brand with a strong customer base.

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

"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."

The business, which dates back to 1934, had established itself as a leader in the value clothing retail sector with almost 300 stores throughout the UK, from Scotland to the South West and South East of England.

The latest annual turnover for the company was approximately £150m and the company employed more than 2,000 staff throughout its stores and at the HQ in Knowsley, Liverpool.