Staff at Oxford department store Allders face an uncertain Christmas after hearing that the chain could be sold for the second time in as many years.

Property group Minerva is putting the business up for sale after receiving approaches from several parties, including the present Allders management team.

City analysts believe several leading retailers including House of Fraser, Debenhams, Next and US business GAP, might be interested in Allders.

The news comes a year after Minerva led a group of investors in buying the 47-strong chain of stores for £158m, beating off competition from retail entrepreneur Tom Hunter.

Minerva has a 60 per cent stake in investment group Scarlett Retail, which is the holding company of the Allders stores.

But it has found the challenge of reviving the business more difficult than expected and recently told investors that its share of Scarlett Retail had brought losses of £22.6m last year.

Old stock was written off and prices cut by former Bhs boss Terry Green, who took up the reins as chief executive of Allders following the takeover last year.

At the same time, store layouts were improved and about 40 new buyers and merchandisers have been recruited.

Mr Green told investors in September that the speed of these changes "has had an impact on the short-term profitability of the business".

Allders employs 8,000 staff over the entire chain, including several hundred in Oxford.

A statement from Minerva said it had appointed investment bank Lehman Brothers to sell the stores.

Minerva added: "Expressions of interest have been received from the existing management team and other potential acquirers, although the sale process is at its preliminary stages."