A UK fashion chain formed following last year’s collapse of Ethel Austin fell into administration today, casting uncertainty over the future of more than 1,000 jobs.

Around 2,500 jobs are under threat at budget clothing chain MK One after the group was put into administration.

Budget British retailer MK One was gearing up for a major expansion today after Icelandic group Baugur confirmed it had bought the chain in a deal worth £55m (€78.8m).

Icelandic group Baugur is to add Mk One to its shopping basket of UK retailers in a deal worth £55m (€78.5m).