Allders of Croydon goes into administrationMonday, 18 June 2012
One of London’s biggest department store’s historic Allders of
Croydon has announced that it has gone into administration, putting more than 300 jobs at risk.
The department store, which is part-owned by Harold Tillman, has appointment Duff & Phelps as administrators to the 500,000 sq ft store after a week of crisis talks failed to save the retailer.
Allders, run by chief executive Andrew Mackenzie had been hoping to prevent administration by reducing its rent and rates bill. Although it has been reported that even though the landlord had agreed to reduce the rent and Croydon Council offered to defer business rates, the concession were not enough to save the store.
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.
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."