Plymouth's major shopping mall project, Drake Circus, hit troubled waters this week as Allders department store chain went into administration yesterday.

Property firm P &O Developments signed Allders in 2001 to be one of its two 'anchor' stores for the new Drake Circus centre, a scheme that has taken almost two decades to get under way. Now city leaders are concerned to see P &O's strategy for the potential loss of a major tennant. For information on the development, see our Viewpoint feature A second phoenix in Plymouth

Allders will continue to trade as normal and stores will stay open while the administrators "review all options" for the business, including a sale. A spokeswoman for P &O Developments said it was still possible that Allders could remain as an anchor.

The property development company said news that department store chain Allders had gone into administration would not put its £200 million Drake Circus development in jeopardy.

P &O will now review its options, which could include finding other retailers or breaking up the space into smaller units.

P &O Developments' senior development surveyor, Graham Corser, said: "We still need to establish exactly what's going on. It's not a foregone conclusion. An announcement was only made yesterday and to say that someone else will step in or that we are looking to break it up into parts is something we don't know."

"Clearly, we have had concerns about the financial position of Allders for a while. We have been planning alternative strategies and we're alive to the situation. We will now be having internal meetings to discuss the situation."

Project above critical mass

Plymouth's City Centre manager Dave Draffan said Drake Circus was far enough ahead to withstand Allders' administration. "…the scheme has the critical mass," he said, "with 50 per cent of the lettings done, it's not an issue."

Plymouth business leader Charles Howeson said it would be unfortunate if Allders ultimately had to pull out of Drake Circus, but added: "If they are, and there's no confirmation, the critical mass of this development is secure."