Croydon department store Allders is to close before the end of the month after failing to find a buyer.
Administrator Duff & Phelps said the store is likely to close on September 22 after 150 years in business.
Duff & Phelps was appointed in June to try and sell the retailer. Although it received a number of expressions of interest, the final remaining party withdrew last week and Allders will shut with the likely loss of 850 jobs.
A key issue for potential bidders was understood to be the uncertainty around the long-term future of the property as a result of planned redevelopment of Croydon.
Duff & Phelps partner Geoff Bouchier said: “It is with sadness that we are making this announcement, as we recognise that the store is an historic and iconic landmark in the local community.
“We would like to take this opportunity to thank the staff of Allders, the concession partners, Croydon Council and the landlord Minerva for their continued support throughout the administration trading period.”
Croydon Council said in a statement: “Unfortunately, the administrators have not been able to negotiate a rescue deal with any prospective investor in the time available.”
Croydon Council leader Mike Fisher added: “We’re tremendously sad that it is likely that the store will be closing its doors. It has been part of the town for a very long time. Unfortunately, Allders has been unable to keep up with the competition in the modern retail market.
“What I am confident about is that the current plans for the redevelopment of the Whitgift centre will see this site given a new lease of life. We will be working closely with the landlords to bring the space back into use as quickly as possible.”