Allders For Sale

Property company Minerva is selling its stake in Scarlett Retail, the holding company for the Allders department store chain. Minerva said that, along with Scarlett's other main shareholder Lehman Brothers, it has "initiated a process for the sale" of the business. A statement said that "expressions of interest have been received from the existing management team and other potential acquirers, although the sale process is at its preliminary stages."

House of Fraser, which has considered a merger or takeover of Allders several times, is likely to be high the list of potential buyers.Minverva, which has itself been in sale talks, said in September that the measures implemented to turn around the Allders business "have reached deeper and taken longer than expected", draining its profits. The 45 store chain includes 25 full line department stores and 20 smaller Allders Home stores specialising in furnishings, beds and homeware.

Minerva's main interest in Scarlett Retail was the freehold of the flagship Allders department store in Croydon, essential to Minerva's Park Place retail development in the town. This was acquired by Minerva in April for £48.8m. Minerva said its total investment in Scarlett Retail amounts to £17.4m, including a £10m short term loan repayable in January. It added that discussions over a potential offer for its whole business continue.