POLITICIANS have expressed optimism that 116-year-old clothing chain Austin Reed has a future, days after the firm famed for bringing ready-to-wear suits to the high street appointed administrators.

The upmarket tailor, which has a head office in Thirsk where it employs about 40 staff in customer service, office, retail and warehouse distribution posts, has blamed its situation on “cash flow difficulties” and “challenging retail market conditions”.

Austin Reed, which offloaded 31 outlets after securing a company voluntary arrangement last year, will continue to trade while administrators AlixPartners seek a rescue deal for all or part of the business.

Industry analyst Rupert Eastell, of audit firm RSM, said the firm's customer service was “not up to scratch”.

He added: “The staff are decent people, and the failure of the business is not their fault, but it is not at the level that is needed.”

The latest accounts of the firm, which has concessions in Darlington and Middlesbrough and stores in York and Harrogate, show pre-tax losses increasing to £5.4m and sales falling by eight per cent to £100.5m.

Peter Saville, of AlixPartners, said: “Austin Reed is a well-regarded and iconic brand and therefore we are confident that it is an attractive proposition for a range of potential buyers, as such we expect, and welcome, contact from interested third parties.”

Thirsk and Malton MP Kevin Hollinrake, who founded Hunters, one of UK's largest estate agency groups, said he felt the firm needed new injection of investment and a fresh strategy, as industry analysts claimed up to 30 parties had shown interest in buying all or part of the business.

Alteri Investors are among the parties believed to interested in buying Austin Reed, having recently taken control of the firm to protect its position as secondary lenders to the firm, behind Wells Fargo.

The Conservative MP pointed towards rival firms such as Charles Tyrwhitt, which have seen rapid rises in business, and pledged to press for help, such as rates relief, for anyone taking the business on.

He said: "We want to keep the offices where they are, so this is a very worrying situation.

"It appears to be a tired business model that needs rejuvenating."

Hambleton District Council leader Mark Robson said the loss of the company, which has been based in Thirsk for about 50 years, would be a blow for the local economy, but if a deal proved impossible he was confident the several-acre site would be taken on by another firm.