Allders may be back in business

Allders, the department store chain that collapsed in January, is stepping up its revival under entrepreneur Harold Tillman by resurrecting the upmarket furniture brand Waring & Gillow. Tillman, who bought the Allders name and its flagship store in Croydon last May, has struck a deal to sell the furniture through catalogue giant Littlewoods and online from the middle of next year. It will also be sold in the Croydon store.

Job losses likely at Allders

More job losses are in store for troubled retailer Allders.The administrator of the department group is understood to have confirmed the closure of four more branches to employees of the collapsed retailer.

The Allders stores at Basingstoke, Camberley, Watford, and Southampton are to close after administrator Kroll was unable to find buyers. The stores were not on the list of ten for which Kroll said it had received limited interest after inviting bids for all or part of the chain, with the closures likely to generate more redundancies. Kroll has already confirmed the closure of the Allders store in Nottingham, on March 24.

So far, the sale of 24 of the 45 stores have been announced, with Bhs acquiring 10, Debenhams eight, and Primark six.

www.allders.co.uk
24 February 2005

Allders Announces Store Closure

The administrator of department store group Allders has announced the first store closure from the collapsed store chain. Administrator Kroll said the Allders store in Nottingham would close on March 24. A further 149 jobs will be lost, bringing the total redundancies across the chain to more than 900.

The Allders Nottingham store anchors the Broadmarsh centre, owned by global shopping centre operator Westfield. Other retailers in the centre include Boots, Bhs and Argos. John Lewis, Debenhams, House of Fraser, and a large Marks & Spencer store already trade in Nottingham, which is likely to have reduced the potential buyers of the Allders store in the city. It is one of 11 stores in which Kroll has said there had been 'limited' interest and was likely to close.

So far, 24 of the 45 Allders stores have been sold, with Bhs acquiring 10, Debenhams eight, and Primark six. Krol has also announced that shoppers will be able to use Allders gift vouchers until the close of business on March, after which they become invalid. Administrators are not legally obliged to honour vouchers bought before their appointment, which had led to confusion at certain stores. Kroll has decided to accept them up to the deadline.

www.allders.co.uk
19 February 2005

Allders Bids In Place

The Allders department store chain is to be broken up, administrator Kroll has confirmed. Kroll, which set a final deadline of last Friday for bids for all or part of the 45 store chain, confirmed that "whilst we had hoped to secure a going concern sale for the entire business this has not been possible."

Firm bids are in place for 35 stores, with rival department store group Debenhams, discount fashion retailer Primark, and Bhs and Arcadia owner Philip Green reported to have joined forces to table a joint offer for the lion's share of the stores.

Allders operates a mix of full-line department stores and around 20 smaller homeware-only stores, which would be split between the three operators. However, Kroll has not said who the buyers are. Kroll said: "We expect that staff at these stores will transfer to the purchasers and believe that, in the present circumstances, this strategy will provide the optimum outcome for both creditors and employees."

Closing down sales have started at the 10 stores for which "limited interest" has been received. These include the Oxford Street store, opened just over two years ago, and the Leeds branch. The others are the stores at Ipswich, Bolton, Chelmsford, Romford, Horsham, Kingston-upon-Thames, and Clifton Moor in York. Up to 700 jobs are potentially at risk at these 10 stores, although Kroll is still willing to consider offers.

www.allders.co.uk
7 February 2005

Allders owed following administration

Jacques Vert faces a potential loss of £740,000 following the decision to put department store chain Allders into administration. The clothing retailer and wholesaler, operates 85 concessions in Allders outlets, from a total of 943 outlets, across womenswear brands including Jacques Vert, Windsmoor, Planet and Precis, menswear brand Melka, and outdoor clothing brand, Tenson.

The group said it is currently owed £740,000 by the Allders group. The figure dos not include any ongoing losses should then concessions close. It said: "The full consequences of the Allders administration on Jacques Vert is not yet known and a further update will be given once the position becomes clear." Earlier this month Jacques Vert announced an improved performance, with interim operating profits up 93 per cent to £3.1m.

www.allders.co.uk
29 January 2005

Allders To Go Into Administration

Allders' banks are on the brink of appointing administrators for the department store group. While there are a number of potential buyers for all or part of the 45-store group, administration seems increasingly likely to be the next step. The company's banks, led by Barclays, believe some interested parties are waiting for administration before making a move. Concerns about continuing trading problems, with like-for-like sales down 2 per cent over Christmas, as well as the retailer's pension liabilities, have caused the bid process to stall.

Scarlett Retail, the holding company for Allders, is majority owned by property company Minerva, has been looking for a buyer since December. Banker Lehman Broters which last week sold on its debt in Allders to a company linked to recovery specialist Hilco, also has a stake in Scarlett, as does the senior management led by chief executive Terry Green. The prospect of administration raises concerns about Allders' 7,000 employees as well as the 2,500 members of its pension scheme.

www.primark.co.uk
26 January 2005

Allders put into receivership

Allders, the ailing department store run by former Debenhams and BHS chief executive Terry Green, will be put into receivership this week. The move comes earlier than expected after restructuring specialist Hilco acquired £90m of Allders' debt from US investment bank Lehman Brothers at a considerable discount.

www.primark.co.uk
23 January 2005

Primark interested in Allders?

The British discount retailer Primark is reputedy considering purchasing some of Allder's department stores.Allders, the troubled department store chain, was put on the market by the property group Minerva. It consists of 25 department stores and 20 home furnishing stores. It is believed that Primark, which is owned by Associated British Foods, would only be interested in part of the chain.

Parties to have shown interest in Allders include retail tycoon Philip Green and Phil Cox, Allder's commercial director and former Asda finance director. However, according to experts, the two will have a hard time financing the deal. Primark operates approximately 120 stores throughout the UK and Ireland. This past fiscal year saw the company's operating profit climb by 23% to GBP 108 million.

www.primark.co.uk
21 December 2004

Allders For Sale

Property company Minerva is selling its stake in Scarlett Retail, the holding company for the Allders department store chain. Minerva said that, along with Scarlett's other main shareholder Lehman Brothers, it has "initiated a process for the sale" of the business. A statement said that "expressions of interest have been received from the existing management team and other potential acquirers, although the sale process is at its preliminary stages."

House of Fraser, which has considered a merger or takeover of Allders several times, is likely to be high the list of potential buyers.Minverva, which has itself been in sale talks, said in September that the measures implemented to turn around the Allders business "have reached deeper and taken longer than expected", draining its profits. The 45 store chain includes 25 full line department stores and 20 smaller Allders Home stores specialising in furnishings, beds and homeware.

Minerva's main interest in Scarlett Retail was the freehold of the flagship Allders department store in Croydon, essential to Minerva's Park Place retail development in the town. This was acquired by Minerva in April for £48.8m. Minerva said its total investment in Scarlett Retail amounts to £17.4m, including a £10m short term loan repayable in January. It added that discussions over a potential offer for its whole business continue.

www.allders.co.uk
8 December 2004

Profits fall deep for Allders

British department store group Allders has posted a nearly halved annual profit but reckons current trading has improved. The company says it has nothing to report on the takeover talks with the Minerva property group. Meanwhile it has notched up a pretax profit of GBP 7.8 million, down from GBP 14.4 million in 2001. In September Allders warned that full year results would be hit by disappointing summer sales.

Total sales were up 3.3% to GBP 560 million but like-for-like sales - which strip out the effect of new store openings - were down 1.7%. Allders blames its focus on gross margin - up a further 0.8 percentage points to 37.9% - major operational restructuring and tough trading conditions at the end of the year.

November 28, 2002
www.allders.co.uk

Allders grossmargin to a 38 per cent

In the first six months ofthe current financial year we have demonstrated that we are firmly on track to deliver our targets on margins and space growthalthough we have found the recent High Streetclimate to be more challenging than for some time. Revenue for the halfyear to 31 March 2002 totalled £308.5 million, (a 3.5% increase); on a like for likebasis there was a 0.4% reduction on the same period last year.

Conversely, and most importantly, the grossmargin percentage has continued to strengthen, a continuing upward trend over the last 4 years, to a new high of 37.8%. This is not coincidental but is the result ofa determined plan to change the profile and mix ofthe business, as part ofourstrategic intent to double profit on sales over a five-year period.We have also ctioned a major review ofthemanagement structure, designed to enhance theservice we offer to our customers at the same time as improving ef“ciencies across the business. Theseactions, which are described in more detail in theChiefExecutives Review, will signi“cantly enhanceour future pro“tability.

Our new store opening programme, including Oxford Street which opens omorrow, has deliveredan exciting new format with enhanced marginsthrough a more profitable selection ofmerchandise.With any new venture, the precise rate ofsales climbis difficult to predict accurately and in some cases,the new concept is taking onger to establish itselfin the minds ofcustomers. However, this is resolvingitselfand should deliver the results we expected.

Profit before tax for the 26 weeks to 31 March 2002 totalled £10.5 million compared with £16.0 millionlast year. Earnings per hare, before pre-openingcosts and exceptional items, were 12.2 pence (2001: 12.6 pence); after dealing with exceptionalitems and pre-opening costs, earnings per share were 9.5 pence (2001: 14.8 pence) out ofwhich an interim dividend of 4.0 pence is being paid (2001: 3.4 pence). This increase of17.6% is a re-balancing between interim and final dividend torefiect more equitably the way in which profits areearned over the full year.

The Board believes that the strategic actions taken to reposition and grow the business and to improveoperating efficiency are creating long term value andaugur well for significant profit growth for the nextyear and beyond.

14/06/2002
More information www.allders.co.uk

Interim Results Allders plc for the six months ended 31 March 2002.

Total Sales up 3.5% at £308.5 million with like for like sales down 0.4%;
Gross margins up a further 1.4 percentage points to 37.8%;
New store openings reduce underlying operating profit to £13.2 million (2001: £14.1 million);
Major internal re-organisation, implemented in March, to improve customer service and efficiency will achieve annualised savings of £9m from 2003;
Profit before tax (post exceptionals) was £10.5 million (2001: £16.0 million);
Dividend up 17.6% to 4.0p (2001: 3.4p), reflecting the Board's decision to rebalance the interim and final dividend;
New 72,000 sq ft department store opens in Oxford Street tomorrow (23 May), the first new department store on Oxford Street for 70 years

New stores in Lakeside, Horsham and Plymouth bring the space secured since November 2000 to almost 0.5 million sq. ft., just under half of the five year target. Harvey Lipsith, Chief Executive of Allders, commented:

"Although the sales environment has been challenging in the first six months, much of this has been the result of deliberate actions taken on our part to improve margins, reposition the Allders brand and increase efficiencies across the business. The continued improvement in our gross margin demonstrates that our strategy is firmly on track, notwithstanding the impact that these actions are inevitably having on our short-term performance.

"Current trading remains similar to that experienced in the first half, as we continue to focus on improving margins through our increased emphasis on more profitable sales. We are confident that all the actions taken to reposition the business are building real value for the future and that they will deliver significant profit growth for next year and beyond."

Chairman's Statement
In the first six months of the current financial year we have demonstrated that we are firmly on track to deliver our targets on margins and space growth although we have found the recent High Street climate to be more challenging than for some time.

Revenue for the half year to 31 March 2002 totalled £308.5 million, (a 3.5% increase); on a like for like basis there was a 0.4% reduction on the same period last year. Conversely, and most importantly, the gross margin percentage has continued to strengthen, a continuing upward trend over the last 4 years, to a new high of 37.8%. This is not coincidental but is the result of a determined plan to change the profile and mix of the business, as part of our strategic intent to double profit on sales over a five-year period.

We have also actioned a major review of the management structure, designed to enhance the service we offer to our customers at the same time as improving efficiencies across the business. These actions, which are described in more detail in the Chief Executive's Review, will significantly enhance our future profitability.

Our new store opening programme, including Oxford Street which opens tomorrow, has delivered an exciting new format with enhanced margins through a more profitable selection of merchandise. With any new venture, the precise rate of sales climb is difficult to predict accurately and in some cases, the new concept is taking longer to establish itself in the minds of customers. However, this is resolving itself and should deliver the results we expected.

Profit before tax for the 26 weeks to 31 March 2002 totalled £10.5 million compared with £16.0 million last year. Earnings per share, before pre-opening costs and exceptional items, were 12.2 pence (2001: 12.6 pence); after dealing with exceptional items and pre-opening costs, earnings per share were 9.5 pence (2001: 14.8 pence) out of which an interim dividend of 4.0 pence is being paid (2001: 3.4 pence). This increase of 17.6% is a re-balancing between interim and final dividend to reflect more equitably the way in which profits are earned over the full year. The dividend will be paid on 8 August 2002 to shareholders on the Register as at 19 July 2002.

Your Board believes that the strategic actions taken to reposition and grow the business and to improve operating efficiency are creating long term value and augur well for significant profit growth for the next year and beyond.

24/05/2002
More information www.allders.co.uk

Allders stable performance

Allders plc, the UK department store and home store group, today announces its trading performance for the 16 weeks to 19 January 2002.

- Overall sales for the 16 weeks to 19 January 2002 up 3.9%, with like for like sales up 0.3% on last year's strong performance
- 1 percentage point improvement in gross margin rate;
- Total sales for the six weeks to 19 January 2002 up 5.1% with like for like sales ahead by 1.7% (equivalent to over 4% increase at constant margins);
- Two year like for like sales for the six weeks to 19 January 2002 up 10.6%;
- Stock levels below last year on a like for like basis;
- New 90,000 sq ft department store to open in Plymouth in 2005.

Trading in the sixteen weeks to 19 January 2002 was up 3.9% compared to the same period last year, with like for like sales up 0.3% for the period. This performance reflects the difficult market conditions experienced in the early part of the period and masks a better performance over the key Christmas and New Year trading period. Total sales for the six weeks to 19 January 2002 were up 5.1% and ahead 1.7% on a like for like basis, which is equivalent to an increase of over 4% at constant gross margins.

Harvey Lipsith, Chief Executive of Allders plc, commented:
"Last year's strong performance inevitably makes comparisons this year harder but on a two year view, like for like sales in the key Christmas and New Year trading period were over 10% ahead. I am particularly pleased with the continuing improvement we have achieved in our gross margin and remain comfortable that we will achieve a satisfactory outcome for the year as a whole."

Allders also announces today that it has been selected by P&O as the anchor tenant for Drake Circus, a new shopping centre to be built in Plymouth, which is due to open in 2005. The Allders department store will trade from 90,000 sq ft of selling space over three floors. On completion, Drake Circus will be the second largest shopping centre in the South West of England.

Allders announced in November 2000 its plan to add 1 million sq ft of selling space to its store portfolio by the end of 2005. Today's announcement of the new Plymouth store is the ninth new site secured since this date and brings the total additional selling space secured to over 400,000 sq ft. New stores were opened during 2001 in Guildford, York, Kingston, Meadowhall (Sheffield), Watford, Leicester and Romford, and a new department store is due to open in Oxford Street during the summer of 2002.
Allders' interim results will be announced in May 2002.
24/01/2002
More information www.allders.co.uk

Allders profits rise
Allders plc announced its preliminary results for the year ended 30 September 2001.

-Total sales up 6% at £542.0 million; like for like sales up 6.4%
-Underlying operating profit up 20.3% to £14.8 million (2000: £12.3 million)
-Profit before tax up 6.7% to £14.4 million (2000: £13.5 million)
-Earnings per share of 13.4p (2000: 12.9p) and maintained final dividend of 5.0p, making a total for the year of 8.4p (2000: 8.4p)
-7 new stores opened - 24% of 5-year space target
-First West End store opening in Oxford Street in mid 2002
-Stephen Tague appointed Managing Director

Harvey Lipsith, Chief Executive of Allders, commented:
"We are very pleased with the progress we have made over the past year, with like for like sales up 6.4% and underlying operating profit over 20% ahead. We have also made significant progress against our two key strategic targets of adding one million sq. ft. of selling space and doubling our return on sales in five years. In the past year, we have opened seven new stores, representing 24% of our target, and increased return on sales from 2.4% to 2.7%.

"Overall sales for the eight weeks to 24 November were 3.5% ahead of last year, reflecting the impact of our store opening programme. On a like for like basis, sales were marginally ahead for the period, reflecting slower trading at the start of October, with recent weeks showing an improvement and gross margins continuing to grow. Our strategy is on track and delivering results. We believe that the actions we have taken to strengthen the business stand us in good stead to face the future with confidence."

More information www.allders.co.uk