Background
Founded in Croydon in 1862, Allders grew through the acquisition of other regional department stores to become a 45 store, £800 million turnover public company at its peak. The late 1990s saw a rapid decline set in and by 2005, Allders plc had been significantly loss-making for a number of years and faced administration.
Lenders to the business believed their position was at risk and, believing that they were unlikely to recover a significant proportion of their loans to the company, decided to sell their secured debt positions to a consortium of investors led by Hilco Capital.