Allders of Croydon goes into administration
The historic Allders of Croydon department store has gone into administration, putting hundreds of jobs at risk.
Duff & Phelps have been appointed as administrators to the 500,000 sq ft store which is understood to have held crisis talks all week to try and fend off its collapse.
Allders had hoped to prevent the administration by securing a rent-free period from its landlords and a break in business rates from Croydon Council. Although it has been reported that the landlord agreed to reduce the rent and that Croydon Council offered to defer business rates, it is thought that concessions were not enough to save the struggling store.
Chief executive Andrew Mackenzie said: “Whilst our funders, shareholders and concession partners have been supportive throughout and the ongoing restructure was progressing, the tough market conditions in the UK retail sector have forced the board to appoint administrators in order to protect the business and its creditors.”
The administrators have confirmed that the store will remain open for business during the administration process and that all outstanding orders will be honoured. A spokesman said: “The joint administrators are currently exploring all potential options to maximise the realisation for the company’s creditors including a sale of the business. Some 300 employees, excluding concessions, are affected.”
Mackenzie added: “We will now work with the administrator to continue ongoing discussions with funders and other interested parties in the business. With the considerable support already given by Croydon Council and our landlord Minerva, I would hope that additional investment or a sale can be achieved.”
Allders is part-owned by Harold Tillman who bought the business out of administration in 2005.
