Staff have been left reeling by news that Primark has axed its deal to buy the Allders store in Oxford.

As Allders counts down to closing, staff hope a buyer will save them

The 140 workers were called into the restaurant at the Westgate Centre flagshipstore by managers yesterday morning and told the budget fashion chain was pulling out at the last minute.

The shock decision leaves the future of the staff and the store in limbo following Primark's announcement 10 days ago that it would give staff redundancy or six months unpaid leave during refurbishment.

But when the store closes next week staff will be leaving with nothing.

Both Allders' administrators and Primark are staying tight-lipped about the deal falling through, but it is thought it broke down because of a clause in the lease, which states the shop can only be run as a department store.

Chris Barry, a spokesman for Primark, said the company was "deeply disappointed not to be coming to Oxford".

The shop's landlord, Capital Shopping Centres of London, would only say it was a private matter between itself and its tenant.

Ian Kitts of Kroll, the firm handl-ing the store's administration, said: "The wages of those still employed will still be paid by the administrators, but those who have taken redundancy will have to make a claim from the administrators once all the assets have been sold off, and this could take time."

Staff leaving the store yesterday were angry and confused.

One said: "It's horrendous. I got out of bed thinking I'd be signing a new contract with Primark and within 15 minutes of getting to work I found they'd pulled out.

"The managers told us all they could, but they didn't seem to know that much themselves -- none of us know. I feel so let down."

In recent weeks concessions have closed and stock and even display units and shelving have been sold off in preparation for the closure.

It is believed that about 60 per cent of the staff had chosen redundancy, while the remainder planned to stay on as Primark employees.

One worker who had chosen redundancy said: "When we were told Primark had pulled out, many cheered because they don't want to work for a downmarket chain. But when they realised what this meant the mood changed.

"The managers said there are plans to take legal action against Primark for promising us jobs or redundancy. Now we've only got a few days to find another buyer."

Uncertainty still surrounds Allders' pension scheme which has an estimated £60m "black hole".

Administrators have agreed to make monthly contributions of £58,000 until June.

Bill McCardle, chief executive of the Oxford city centre management company OX1, said: "Oxford is one of the top five trading locations in the UK and a new bidder will be found in due course."