Allders administrator Duff & Phelps is struggling to sell the iconic department store because of doubts over the property.
Duff & Phelps admitted in a report to creditors that there is uncertainty around the long-term future of the site due to redevelopment plans in Croydon.
The report said: “The store is situated in an area where there is planned redevelopment and therefore the future tenure remains uncertain.”
Administrators said that a number of offers have been made however, and turnaround firm Hilco, department store group Beales and former owner Harold Tillman are understood to be interested, the Daily Mail reported.
Allders collapsed in mid-June, by whihc time Tillman was understood to have sold his stake. The retailer owes £3.4m to trade creditors and administrators are now attempting to sell £2m of stock.
Tillman’s fashion brand Aquascutum also went into administration before being bought by YGM Trading in May, and he sold his majority stake in luxury clothing retailer Jaeger to Better Capital in April.
As a result of the Allders collapse, Jaeger is owed £176,000. It is also owed £13m following Aquascutum’s administration.
The concern over the redevelopment of Croydon comes amid a hard fought battle between shopping centre developers Westfield and Hammerson for the right to improve the town.