A MAJOR retailer on Llandudno's high street has gone into administration.
National clothing chain Ethel Austin announced on Monday the firm had been forced to call in administrators after failing to raise extra money needed to meet costs.
One of the branches occupies a major site on Mostyn Street, which has been plagued with empty units and closing stores.
Although job losses and closures have not been confirmed, administrators have not ruled them out.
Mayor of Llandudno, Cllr Janet Jones, said she would be sad to see the shop closed.
She said: "It would be a huge shame if the company was to go. I just hope another company would come in and take it over. It is a main shop and a large shop on the high street."
Administrators MCR were appointed by Ethel Austin and its sister homewares chain Au Natural to trade the companies while looking for a buyer.
The company currently employs 3,700 workers in almost 300 stores across the country.
In a statement MCR said: "In the current economic climate there are no guarantees that purchasers will be found. We are reviewing the financial position of the companies and are at this stage, unable to rule out store closures and redundancies."
This is not the first time Ethel Austin has had financial troubles, having been bought out of administration in 2008 by the former boss of MK One, Elaine McPherson.
John Gorle, National Officer for the Union of Shop, Distributive and Allied Workers (Usdaw), said: "The announcement that Ethel Austin has again gone into administration isn't a complete surprise as we were aware that the company had some financial difficulties.
"We have already made contact with the company and the Administrators with a view to working closely with them in an attempt to secure the employment of all staff.
"[The] announcement is terrible news for the loyal and hardworking staff who now face a period of uncertainty surrounding their future."