Furniture retailer in administration
12/01/2009
Struggling UK furniture retailer Land of Leather confirmed on January 12 that it has gone into administration. Deloitte will act as administrators for the company.
Land of Leather has 109 stores in the UK and Ireland and employs around 1,000 people in total.
“The company has been unable to secure additional funds due to the exceptionally difficult trading conditions and the lack of liquidity in the banking system,” it said in a statement. “In addition, the board has pursued other strategic options including the sale of the company.”
According to Reuters, Deloitte said in a separate statement that the business would trade as normal while it continued to talk to interested parties, with the aim to sell the business as a going concern.
“The administrators are working closely with the management to protect the interests of customers who have paid deposits on furniture orders,” Deloitte said.
Land of Leather’s market capitalisation plummeted oin the course of 2008, with the company issuing three profit warnings over the period. Analysts said it had been hit hard by the slowdown in discretionary consumer spending and in the UK housing market.
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