Discussions are continuing into the future of Oxford city centre's Allders department store, with budget fashion chain Primark expected to move into its Westgate Centre premises if a sticking point in the lease can be overcome.

The fate of the shop's 140 workers is still undecided while Allders' administrators are involved in continuing talks.

Ian Kitts, of Kroll, the firm handling the store's administration, said yesterday (Mar 18) that the takeover was at a "difficult stage" where it seemed like nothing was happening but in fact "frantic talks" were ongoing.

He said: "We would rather say with clarity what the position is in a few days. We are doing everything we can to get the right solution and are hopeful that one can be managed."

Mr Kitts added: "The employees are being informed as much as possible. It's difficult to say too much in the public domain at the moment."

But a spokesman for Allders's landlord, Capital Shopping Centres, of London, said there was no problem with the lease, adding: "There is no issue as far as we are concerned. It is happening."

Allders is expected to close after its last trading day on Tuesday.

When the planned takeover was first announced, Primark offered staff redundancy or six months' unpaid leave during refurbishment of the site.

It is thought that about 60 per cent of workers have chosen redundancy. Primark has said that the same agreement would stand if the deal went ahead.

The Allders store has long been the Westgate Centre's flagship premises and the site's future could be bright if the centre's planned £220m redevelopment is approved.

Last month, eco-friendly plans for the centre were submitted by Oxford Green Party to developers.

They included a tram link to the railway station and a renewable energy plant. The new centre would create 1,400 jobs and could be open by 2011.