End of the line for Allders' flagship

BELEAGUERED department stores group Allders today received the death sentence for its flagship Croydon shop. Allders' owner, property developer Minerva, has terminated an agreement under which the chain was to occupy a shopping centre that Minerva has planning permission to build on the site of the existing Croydon store.

Minerva, which bought the freehold to the Croydon site for £49m last April, is now free to put in a new tenant for the scheme, which at a million square feet will be twice the size of the present store.

John Lewis is thought to be in contention as an anchor tenant. Allders' right to a place in the new scheme lapsed if the store suffered a change of control. A breakup-of Allders' remaining 45 stores from Clapham Junction to Camberley is now inevitable with front-runners understood to include Debenhams, Primark, House of Fraser and Bhs billionaire Philip Green.

Allders' former chief Harvey Lipsith is thought to be out of the running after putting in a bid of less than £50m for a dozen sites, below the total value of counterbids from retail chains for selective sites. Alchemy Partners' £70m bid for the company has already been rejected.

Kroll is running Allders after the chain went into administration 10 days ago. Minerva will not charge the administrators rent on the existing Croydon store for the six weeks to 9 May.