Land of Leather struggles amid economic downturn, shares suspended

Furniture retailer Land of Leather is currently reviewing its finances and has requested that the stock exchange suspend its shares and has lined up an administrator just in case the situation deteriorates.

The 109-store retailer, based in Kent, is debt free but insiders say the chain requires emergency working capital to continue trading.

The economic downturn has meant that the retail environment has become challenging for many. Furniture retailers, in particular, have been hit hard with MFI collapsing late last year while Sofa Workshop, which used to be owned by MFI, was on the verge of administration last week.

One reason is the downturn in the housing market since a lack of buyers has resulted in low demand at these types of stores.

In the last year alone, furniture and furnishings retailers including Ilva, Rosebys and Beds Direct have all collapsed.

Land of Leather, which is chaired by former Sainsbury’s finance director Roger Matthews, announced three profit warnings last year after sales plummeted.

The company has a workforce of 850 people.

Story link: Land of Leather struggles amid economic downturn, shares suspended