Allders of Croydon, the commercial property department store, has gone into administration, the third commercial property business in which Harold Tillman has been a major benefactor to hit the buffers in as many months.
The commercial property department store, the third biggest in the UK, has appointed Duff & Phelps as administrator, blaming a decline in sales on “the well-publicised economic difficulties facing the UK”. Three hundred jobs are under threat.
The collapse comes in the same year the commercial property department store was celebrating its 150th anniversary, however at the moment the store remains open for trading.
Long-time associate of Mr. Tillman and a director of Allders, Andrew 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.”
He further 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.”
The administration will be another disappointment for Harold Tillman, a well- known figure in the commercial property retail sector, who is seen by many as an elder statesman. He is chairman of the British Fashion Council and recognised for persuading both the current and previous Government to take the fashion industry more seriously.
Mr Tillman was once the majority owner of commercial property store Allders, having ironically bought it in 2005 out of administration. However following a shake-up deal earlier this year, he reduced his stake to 35 per cent. Hilco, a retail restructuring expert took a 35 per cent stake and Royal Bank of Scotland’s West Register took a 30 per cent equity slice. It is unclear whether it was the landlord or one of the shareholders who were responsible for administrators being appointed.
However, the collapse symbols the end of Harold Tillman’s retail empire-one which he tirelessly built up over the last eight years in what had been a notable comeback for the tycoon.
Mr. Tillman blamed last summer’s riots and looting which affected Croydon’s town Centre, for exacerbating the commercial property stores problems. He added: “The business has not recovered since the riots. Unfortunately, nothing has been done by government or the council to help.
“It appears many businesses have not got compensation at all. Croydon council has not done what they should have done.”
Commercial property retailer Aquascutum, which he owned, fell into administration in April. The same month he sold his stake in Jaeger to Better Capital, for a small sum, after racking up significant losses.
A statement made by Croydon Council said: “The council has been working very closely with Allders to prevent the store going into administration. And is disappointed that, despite best endeavors within the very short time that was available, it has been unable to prevent this because of the store’s inability to raise working capital.
“As well as discussions with key parties, the council offered to defer business rate payments.
“It’s very unfortunate that Allders did not seek help from the local authority until after it had secured a notice of intention to appoint an administrator.”
When he bought commercial property store Jaeger in 2003, the £1 purchase symbolised a major return to the high street for Mr Tillman, who had presided over the collapse of the Honorbilt fashion empire in 1990, which ended in animosity. He was briefly excluded as a company director.
His recovery was such that he has chaired the British Fashion Council since 2008, which manages the successful London Fashion Week.
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