Staff at Birmingham's High Street outlet of Bay Trading have walked out of the company after being forced to reapply for their own jobs.
The employees were made redundant after parent company Alexon chose to close the store and re-brand it under their new flagship fashion chain Mandolin.
One employee said: "The company held a meeting with us on July 11 and announced we were going to be made redundant.
"We were given the option of re-applying for our jobs, which were already being advertised as vacancies by Alexon.
"Many of us were upset by the lack of information we were given and myself, along with five other girls, have decided to leave the company."
Alexon disputes the number of employees who opted for redundancy and said that the majority of staff at the branch did re-apply.
In a statement the group said: "We can confirm that we have given the staff in Birmingham the opportunity to re-apply for jobs as we rebrand the Bay Trading outlet to our new brand, Mandolin.
"We are happy that all bar three of the 13 staff are staying with us."
Although Alexon has no plans to open a new Bay Trading outlet in the city, the group said it would continue to sell the range through Debenhams and Beatties.
The High Street outlet, which closes its doors this Saturday is due to reopen as Mandolin on September 15.
In April Alexon warned that £3 million would be wiped off its yearly profits after the collapse of Allders.
The group, which had 118 concessions within Allders outlets, said it has already taken a £2.2 million hit to cover monies owed and writedowns on stock and fixtures.
The exceptional items left profits for the year to January 29 at £26.9 million, compared with £29.4 million a year earlier.