Allders bids hit by fears over site

POTENTIAL bidders for the failed Allders department store are holding back as doubts plague plans for the Croydon site.

Administrator Duff & Phelps is trying to offload the south London shop, the third-biggest department store in Britain, which went into administration two months ago. It emerged last week that it owed £3.4 million to trade creditors.

Potential buyers, which include former owner Harold Tillman, are understood to be wary at the lack of clarity over development plans.

Turnround investor Hilco is reported to be interested, but administrators said only that ‘a number of indicative offers’ had been received.

They also admitted in a report to creditors that there was an issue over the store’s property.

‘The store is situated in an area where there is planned redevelopment and therefore the future tenure remains uncertain,’ says the report.

The collapse of Allders in midJune came after Tillman had cut back his stake. He also sold a majority share in luxury retailer Jaeger to Better Capital in April. At the same time, his Aquascutum fashion brand went into administration.

Jaeger is owed a further £176,000 as a result of the Allders collapse, having been on the hook for £13 million in losses as a result of Aquascutum’s administration.

Administrators are now looking to sell £2 million worth of stock, the report also reveals.

The Croydon store turned over £10 million in 2011, the report says. At its peak, Allders had 45 stores turning over £700 million.