Allders fails to weather the storm

Allders, the department store backed by fashion entrepreneur Harold Tillman, has become the latest retailer to collapse into administration. Duff & Phelps, the advisory group, was on Friday appointed as administrator to Allders, the UK’s third- biggest department store by retail space, putting 300 jobs at risk. More ON THIS STORY JD Sports reveals £10m Blacks loss Home furnishings sales boost Laura Ashley M&S to launch bank with HSBC IN RETAIL Carrefour and bank pull out of Greece An unhappy coincidence for Esprit Carphone Warehouse sales down 5.5% Tesco urged to shake up US business Mr Tillman owns 30 per cent of the store. He acquired Allders in 2005 out of administration. He sold 70 per cent last year to management and other investors after the riots in Croydon, South London, which took their toll on Allders’ trade. Mr Tillman said on Friday: “I am very sad about it, because I think I have done my bit and I just hope there is an opportunity that someone will come along and take it back on.” He voiced hope that a buyer could be found and praised Andrew MacKenzie, chief executive. Duff & Phelps said: “The board of Allders has today taken the decision to place the company into administration following a marked downturn in sales brought on by the well-publicised economic difficulties facing the UK.” The administration came after Allders had sought to renegotiate rents with its landlord Minerva, according to reports. Minerva said on Friday: “Since they approached us on 6 June, we have been engaged in a proactive dialogue with both the management and shareholders of Allders in a concerted effort to try and save the business. “We responded quickly and constructively to the concession requested. We are very disappointed that, even with our offer to assist, the board of Allders has been unable to conclude that the business is viable going forward and administrators have therefore been appointed.” The move also comes after Mr Tillman’s Aquascutum business was put into administration in April. Its brand was subsequently sold to YGM, Aquascutum’s licence holder in China. However, Mr Tillman said that despite the recent difficulties, he remained proud of his record, which had saved 4,000 jobs since 1999 through his investments. Duff & Phelps said Allders remained open for business and concession partners were continuing to support it during the administration. Outstanding customer orders also continued to be fulfilled. Allders’ problems underline the parlous state of UK retail. Many store groups face quarterly rental payments next week, when they must pay three months rent in advance. Trading will also have been poor because of the unseasonably bad weather.