Allders' plan for a national re-expansion has hit a setback after two prospective sites were sold to a rival retailer.

The Croydon department store, which was bought by Jaegar boss Harold Tillman in 2005, had been linked with the Robbs department store site in Hexham and a Joplings outlet in Sunderland.

Mr Tillman was reportedly in talks to buy the stores, which he planned to re-brand to help kick start a revival.

However, former Owen Owen managing director and major shareholder David Thompson has bought back the sites from administrator Kroll.

Mr Thompson, who worked for Mr Owen before it went into administration in February, has purchased the two stores as a going concern under his acquisition vehicle Vergo Retail, which was set up last week.