FEARS were raised over hundreds of jobs at collapsed department store group Allders when administrators revealed they would have to break up the business.

Kroll, which took control of the group late last month, said it was in talks with buyers interested in 35 of the 45 outlets.

But it said the remaining ten stores, which employ around 600 to 700 staff, generated "limited interest''.

None of Allders' four stores in Hampshire, which includes one in Southampton, are among the unwanted ten branches, a group known to include its flagship store on London's Oxford Street, as well as the Reading outlet.

The administrators also said they were not making any redundancies at any stores at the moment.

Kroll said in statement: "While we had hoped to secure a going concern sale for the entire business this has not been possible.''

It said it had started detailed talks with bidders for the 35 stores and hoped to complete sales as quickly as possible. Stores were due to remain open while the talks continued.

Kroll added: "We expect that staff at these stores will transfer to the purchasers and believe that, in the present circumstances, this strategy will provide the optimum outcome for both creditors and employees.''

A spokesman would not comment on speculation that retailers Debenhams, BHS and Primark were in advanced talks to buy more than 25 of the stores between them.

The 143-year-old business went into administration after falling victim to tough trading conditions and the failure of its owners to find a buyer.

Allders generated sales of £524m in the year to June from its 26 department stores and 19 stand-alone homeware outlets.