The fashion industry is suffering in the credit crunch.

The French clothing brand is the latest in a line of retailers to go into administration.

The company that celebrated its 40th anniversary in 2008 is yet another victim of the global economic crisis. Hundreds of jobs across the world will be lost as the firm files for bankruptcy.

The Paris-based clothing line, 40% of which is owned by private equity firm Apax, has 575 stores in 57 countries as well as 1,000 multi-brand retail outlets selling the Morgan brand. It employs 1,000 people worldwide, including 750 employees in France.

Morgan has faced stiff competition from brands such as Hennes & Mauritz and Zara.

According to the BBC, the company expects to report a 9% fall in 2008 sales but had hoped to be able to sell the business since earlier this year.

A spokesman for Morgan told French news agency AFP there were three reasons for the firm’s downfall: the financial crisis, problems in the UK and the difficulty of finding a new owner.

The fashion line has not operated in Britain since March.