Harold Tillman tells of bitterness over the fall of Allders

By Neil Craven

PUBLISHED: 16:15 EST, 16 June 2012 | UPDATED: 03:01 EST, 17 June 2012

Speaking for the first time about the crumbling of his retail empire, fashion entrepreneur Harold Tillman told Financial Mail of his ‘bitterness’ over the fate of Allders and has cast doubt on major redevelopment plans following the store’s demise.

Allders of Croydon, in south London, the last of the chain’s department stores, collapsed into administration on Friday.

Tillman said: ‘Maybe its just my bitterness coming out. But the past years for me have been about saving jobs.’

Troubles: Howard Tillman, pictured with Lady Victoria Hervey, has seen his Allders store fall into administration

He said he had saved 4,000 jobs through his acquisition of companies in recent years and was disappointed to see the turn of events at Allders, which blamed the demise on ‘the well-publicised economic difficulties facing the UK’.

The failure of the business came as a creditors’ report on Tillman’s Aquascutum brand showed that the company had more than 12 months’ of raincoats on its books when it went into administration in April. That is four times as much as a shop would usually hold.

It also emerged that Jaeger, another of Tillman’s firms, was owed £13million by the failed raincoat brand. The entrepreneur sold some of his stake in Allders six months ago and remained only a minority shareholder.

He said: ‘The promised redevelopment never came to fruition and it doesn’t look like that is going to happen. Now there could be a very big, empty shop in the middle of Croydon.’

The 150-year-old Allders store is understood to be Britain’s third-biggest department store with 500,000 sq ft of space. The possible closure of the shop could see 300 permanent staff lose their jobs and 550 more, who are employed indirectly through the store’s concessions, put out of work.

Into administration: Aquascutum

Administrators at Duff & Phelps said that they were looking ‘at all options’ for the store and that it ‘remains open for business’. However, the money needed to maintain such a large store and satisfy suppliers and other creditors could be too much for any investor to swallow.

Allders management recently agreed terms for a temporary suspension of rent payments with landlord Minerva. Sources said that could have been extended in perpetuity, or until development plans were realised. However, the deal was struck too late, they said.

The consumer downturn has taken its toll on Tillman and he sold Jaeger two months ago, though he retains a stake. Tillman is also chairman of the British Fashion Council.

A friend said: ‘He has put a lot into his businesses, including his own money.’ Meanwhile, Allders director Andrew MacKenzie said: ‘We will now work with the administrator to continue ongoing discussions with funders and other interested parties in the business.’

The Allders chain collapsed into administration in 2004. Tillman acquired the Croydon store as part of the Jaeger business in 2005.