That the demise of one shop can command such attention in a retail landscape scarred by CVAs and large administrations is a reflection of the place Allders holds in British retailing history.

That the demise of one shop can command such attention in a retail landscape scarred by CVAs and large administrations is a reflection of the place Allders holds in British retailing history.

Administrator Duff & Phelps said the 150-year-old department store – which once held its own with the likes of Harrods and Selfridges – is likely to close on September 22 after failing to find a buyer, putting 850 jobs at risk.

The ongoing uncertainty about the long-term future of the property, as Croydon’s redevelopment battle rumbles on between Westfield and Hammerson, may have sealed Allders’ fate. But the seeds of ruin were sown long before. Ten years ago the business ran more than 40 stores. Now all that’s left is the single shop.

Its troubles began in 2003, when Scarlett Retail Group bought Allders for £162m. By 2005 it had collapsed into administration and has struggled to recover since, despite new ownership and investment from Harold Tillman. Unable to keep pace with the rapidly evolving department store sector, its prospects always looked tough.

Allders’ travails have mirrored the fall from grace of Croydon itself. As retailing in the Southeast moved towards developments such as Bluewater and London’s West End, Allders found itself as a flagship in a second-rate destination, a situation exacerbated by last summer’s riots.

But Westfield’s plans for a £1bn regeneration of Croydon demonstrate the potential of a borough with a population of 339,500 and strong transport links. The vision includes bringing a new department store to the town.

Some will lament the end of Allders, but it has long since lost the pull needed to anchor Croydon’s turnaround. As sad as the end may be, it could pave the way for a leading department store to move in. And, in so doing, it will deliver one of the cornerstones of Croydon’s revival.

Sweeter story at Thorntons

While not the biggest retailer to report this week, Thorntons’ stood out. There was another profit fall, but the second-half numbers were the most encouraging for years.

The results were ahead of analysts’ expectations, and there were welcome signs on gross margins and operating costs, indicating initiatives kick-started by boss Jonathan Hart are gaining traction. Management rightly remains cautious, but Thorntons watchers are looking to the key Christmas period with a sense of optimism.