Alchemy quits the bidding for Allders

ALCHEMY is out of the bidding for collapsed department stores chain Allders, which is now set to be sold off store-by-store to rival retail groups.

Jon Moulton's private equity firm put in a bid of £70m but is understood to have been told by administrators Kroll that its offer has been unsuccessful.

As Alchemy was thought to be the only bidder that was prepared to take on Allders as a going concern, the 45-store chain will now be broken up and sold off to other retailers.

While many were put off from taking on the whole business because of its pension-fund deficit, there has been wide interest in acquiring its sites.

Up to 60 potential buyers have expressed interest in picking up some of the stores. They include House of Fraser, Debenhams and discount retailer Primark, owned by Associated British Foods.

Kroll is clearly confident it can raise more than the £70m offered by Alchemy by breaking up the business. However, the move raises further questions over jobs at the stores and the future of the company pension fund, which has a deficit of £58m.

It is feared that its 4,000 or so members could lose all or at least part of their retirement savings if the fund is wound up.