Allders ad department faces axe

The 12-strong marketing team at department store chain Allders, headed by Adrian Teague, could find themselves without a job if, as expected, the troubled retailer is put into administration.

Advertising agency RPM3 is also thought to be owed money by the department store chain and could find itself out of pocket if the administration goes ahead. Over the weekend the retailer was heavily discounting stock, selling off big-ticket items at prices thought to be significantly lower than normal for this time of year.

Speculation has been mounting that the retailer will be placed in administration as a deadline for bids for Allders expired on Monday, with little sign of interest from potential bidders.

Minerva, the property company that has majority control of Allders, put the 44-strong chain up for sale last month; last week Lehman Brothers sold its debt in the retailer to turnaround specialists Hilco, triggering speculation that it would put pressure on the group to go into administration.

The move reportedly came as a surprise to Minerva, a 60 per cent stakeholder in the joint venture company Scarlett Retail, which bought Allders two years ago for £162m. Allders chief executive Terry Green and commercial director Phil Cox also have a 20 per cent stake. At the time Lehmans lent most of the cash for the acquisition.

Several rival retailers have declared an interest in some of Allders’ stores, including Debenhams, House of Fraser and New Look.

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