The future of Allders' flagship Croydon store is in doubt after receiving no firm news of any potential buyers.

Property group Minerva fronted by Scarlett Retail, the owner company in which Minerva owns a 60 per cent stake put the ailing department chain up for sale last year.

But after a disappointing Christmas and January sales, the future of Allders is in the spotlight.

Rumours that the chain could even go into administration have been circulating but were dismissed when contacted by the Croydon Guardian by both Allders and KPMG, the corporate recovery firm said to be lined up to manage the process.

Poor trading at the 45-store chain is already thought to have reduced the asking price to as little as £100million.

A bid for the chain seems less likely because any substantial equity is in its property and the North End freehold also owned by Minerva is not included in the deal.

The Croydon Guardian last month reported how rival John Lewis looking to locate in Croydon has been promised the top-spot in the Park Place development, which will line Katharine Street, leaving Allders with a less prestigious spot.

Several potential buyers have been mooted, including a management team buyout by Allders chief executive Terry Green and commercial director Phil Cox, but none have materialised.