Allders of Croydon, the department store part owned by Harold Tillman, has been placed into administration today.
Duff & Phelps have been hired as administrator to the 500,000 sq ft store.
The store, run by chief executive Andrew MacKenzie, had been hoping to stave off administration by reducing its rent and rates bill. But it is thought that although the landlord reduced the rent and Croydon Council offered to defer business rates, the concessions were not enough.
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.”
Tillman, one of the UK’s best known retailers, reduced his ownership of the store to 35% before Christmas while retail restructuring expert Hilco took an equal stake and Royal Bank of Scotland's subsidiary West Register took a 30% slice.
Tillman, who is the chairman of the British Fashion Council, bought Allders of Croydon out of administration in 2005 but the business dates back to 1862.
The situation in Croydon follows Tillman selling his Jaeger retail chain to Better Capital for just above its level of debts in April. His Aquascutum brand was placed into administration later that month. Tillman bought all the businesses when they were in financial difficulties. He said: "In the last 12 years I have saved businesses that have been on the brink and I have kept more than 4000 people in employment."
The Allders store, which employs more than 300 people, will remain open for business.
Mackenzie said: "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.”
A spokesman for Croydon Council said: "It was only on Monday [of this week] that Allders informed the Council that it had already been to the high court in Bristol to secure a notice of intention to appoint an administrator. The immediate support that the Council could give was a deferral of business rates and we made an immediate offer to do so until January next year."
