Land of Leather enters administration

THERE was yet more retail dismay today as furniture retailer Land of Leather appointed Deloitte as its administrators.

The company employs 850 staff across its 109 stores, with nine stores across the region in Manchester, Chester, Liverpool, Oldham, Bolton, Stockport, Wigan, Southport and Warrington.

The Kent-based company said it has been operating in “challenging market conditions”  for some time as a result of the credit crunch and lack of consumer spending on bigger ticket retail purchases.

The company is debt free, but directors had been unable to obtain working capital facilities for the business.

Lee Manning and Nick Edwards of Deloitte have been appointed as joint administrators. Trading in the shares were suspended ahead of the announcement to the stock market.

Land of Leather said in a statement: “The company has made every effort to reduce costs and conserve cash, but market conditions have continued to be difficult and the results from the January sale have been very disappointing.”

It added: “The company has been unable to secure additional funds due the exceptionally difficult trading conditions and the lack of liquidity in the banking system. In addition, the board has pursued other strategic options including the sale of the company as a going concern.”