Allders directors have been called to account over the handling of the administration crisis that sees hundreds of jobs at risk and thousands owed to small businesses.

Croydon Council leader, Coun Mike Fisher, called an extraordinary meeting on July 2 to demand answers into the collapse of the company last month.

He questioned why council help was sought days after the company had already filed for administration with the High Court, and why debts to concessions owners in the North End store were allowed to mount up in the months preceding.

He said: "I am not expecting we will be able to get to the bottom of all these questions but I think it is important we try because there are 800-odd jobs and a lot of local business affected and these people deserve to understand what has happened."

Coun Fisher also questioned the manner in which shares in the company were sold prior to the company going into administration.

He said: "It is inconceivable to me somebody in business for some time would not have knowledge of what was going to happen.

"By the time they did ask for help it was virtually impossible for us to help."

Coun Fisher accused landlords Minerva of charging four-times the going market rate for Allders to rent the store space, an allegation Minerva refutes.

Andrew McKenzie, chief executive of Allders, defended his actions, stating he had undergone strenuous efforts over a long period to try and save the store.

He pointed to a downturn in trade from the beginning of the year as contributing to the closure and said his priority was working with administrators to find new owners and save the 850 jobs at risk.

He also thanked the efforts of Jon Rouse, chief exectuvie of Croydon Council and landlords Minerva for their support.

Talks are underway to place concession holders in department stores in Centrale shopping centre should the store fold.

A spokesman for administrators Duff & Phelps said creditors were still coming forward, so no figure on the level of debt was available, and refused to comment on speculation over whether prospective buyers had come forward.