JOBS at one of York's troubled Allders stores appeared to have been saved today after the shop was bought by rival retailer Bhs.

The Picadilly branch, which employs 43 staff, was one of ten outlets bought by Bhs, put up for sale by Kroll after Allders went into administration last month.

But the future of the Allders at Home store in Clifton Moor is still uncertain, and a closing down sale began last week.

The duty manager at the Picadilly branch, who did not want to be named, said staff had not been told whether their jobs were safe, but most had welcomed the decision.

Administrators Kroll announced almost 700 redundancies across Allders stores on Friday, but could not confirm whether the 42 jobs at the Clifton Moor store would be affected.

Len Cruddas, chief executive of York and North Yorkshire Chamber of Commerce, said he welcomed the news that the Picadilly site had a future.

"It's good news for all concerned, and I hope they'll take the staff as well," he said.

Mr Cruddas said he had not given up hope on a buyer being found for the Clifton Moor store: "Right from the very beginning there's always been a general sense around that the Allders At Home stores would be the ones that would be snapped up so we remain optimistic for the Clifton Moor store."

Bhs - owned by retail tycoon Philip Green - took over ten outlets, including the Knaresborough store, while Debenhams added eight stores to its portfolio and Primark bought six.

Corporate recovery specialists at Kroll said it was now studying the options for the remaining 21 stores and the Allders head office in Croyden, Surrey.

Andrew Pepper, of Kroll, said: "Completing these deals quickly was imperative as timely sales have helped maximise the retained value in the business for the benefit of creditors."

It is hoped the stores will be handed over to their new owners by the end of March, although some may close temporarily for a refit and the addition of a new fascia.

Updated: 11:26 Tuesday, February 15, 2005