Land of Leather calls in administrators
Updated on 12 January 2009
Land of Leather has appointed Deloitte as administrators, the company has said.
Earlier, the furniture retailer suspended trading in its shares "pending clarification of the company's financial position".
The Kent-based company, which has 850 staff and 109 stores, has been hit by the slowdown in consumer spending which has affected the sale of "big ticket items" particularly hard.
Shares closed on Friday at 2.75p, valuing the business at less than £1 million. The firm floated in 2005 and its shares reached as high as 357p in January 2007 as the property market approached its peak.
Last month it said total sales orders had slumped 47 per cent in the previous three months.
It also held brief talks with potential bidders but ended these saying there was "insufficient value" for shareholders.
In June it was forced to raise £15 million from shareholders to keep it from going under.
Last week rival chain Sofa Workshop said it was calling in administrators.
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