NEARLY half the staff at fashion retailer Pilot Clothing faced an uncertain future yesterday after the company went into administration.

About 300 jobs are believed to be at risk after efforts by the chain of 70 outlets, which including three stores in the North-East, to seek a financial lifeline were undermined by poor Christmas sales.

However, the company is part of a larger group that includes Designer Rooms and Pilot Outfit, which remain trading from 40 stores.

Administrators have saved 400 jobs by selling half the stores in a deal with an unnamed party. They are now reviewing the future of the remaining outlets, but warned that some may have to close.

Staff at Pilot's high street shops in Newcastle, Middlesbrough and Gateshead are still waiting to hear their fate.

Neil Bennett, of insolvency specialists Leonard Curtis, said: "The company has suffered badly from poor trading conditions throughout 2004 and this was further exacerbated by weak sales in the period leading up to Christmas.

"We are currently reviewing the trading position, although it is likely that a number of stores will have to be closed."

It is understood that Pilot chief executive Jeremy Whaley secured an agreement to refinance the business in September on condition that it met sales and margins targets by the end of winter. However, that was before a poor Christmas performance.

Pilot, which is based near Winchester, Hampshire, and has its flagship store in Oxford Street, is owned by investment vehicle Retrofit, which is believed to have tried to sell its 74 per cent stake last year but failed to find a buyer.