Customers who have placed orders could also suffer, as it appears unlikely that the business will survive as a going concern.
The Daily Mail reported that insiders at the department store felt that administration was a near certainty despite last-ditch talks.
Allders, owned by Minerva, has been up for sale for a month now, but buyers have been hesitant to take over the pension liabilities.
Allders owns 45 department and homeware stores, but has suffered losses of £27m for the financial year to June 2004.
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