USC, the fashion clothing retailer backed by Sir Tom Hunter, has become the latest high street name to fall into administration.

The collapse of the chain has put 300 jobs at risk at 15 of its 58 stores.

But Sir Tom, the entrepreneur and Scotland's richest man, has launched a deal to save as many as 43 of the stores, preserving 1,127 jobs.

Dundonald Holdings, a subsidiary of West Coast Capital (WCC), Sir Tom's private equity vehicle, agreed the purchase with the administrator, Bryan Jackson at PKF.

Dundonald Holdings has taken on the USC brand name, website and aims to retain up to 43 of the chain’s 58 stores.

WCC purchased USC in 2004.

Jim McMahon, founding partner of WCC with Sir Tom, said: “Having taken that action, we are now confident that with the support of our suppliers and landlords with whom we are now negotiating, that we can deliver a strong and profitable business with sustainable employment prospects for the remaining staff going forward.

“We had to take action to ensure the survival of the core business particularly given prevailing market conditions. We will continue to invest in the business,” he added.

USC started life as a single store in Edinburgh in 1989. It stocks brands including Diesel, Henri Lloyd and Lacoste.

It has become the latest high street victim of the economic slowdown.

Yesterday, Adams the children's clothing chain, looked set to collapse.

Last week, Zavvi, the CD and DVD retailer, and Whittard of Chelsea, the upmarket tea merchant, both went into administration.

On Christmas Eve, The Officers Club was taken into new ownership. David Charlton, chief executive of the menswear retailer, took on 118 of the chain's 150 stores with his company, TimeC 1215, in a deal that preserved 900 jobs.

In November, Woolworths fell into administration and the last of its 800 stores will close in early January.

Sir Tom Hunter was ranked 68 in The Sunday Times Rich List 2008 but research for next year's list indicates that, with other wealthy individuals in the UK, his fortune has suffered in the economic downturn.

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