1:50pm Monday 12th January 2009
SCORES of staff are threatened with the axe following the collapse of another big-name High Street chain.
Land of Leather, which has dozens of staff at two stores in Chichester and Crawley, called in the administrators yesterday(MON) after efforts to secure additional funding and sell the business failed.
The firm has been crippled by a slump in demand for “big-ticket” goods as consumers come under pressure and house prices tumble.
A spokesman said: “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.”
The firm said it had taken “all the necessary steps” to ensure customers who have paid deposits for furniture were protected.
Land of Leather said its funding efforts failed due to the “exceptionally difficult trading conditions and the lack of liquidity in the banking system”.
The company is debt-free but was unable to secure working capital to keep the business going.
The group, which has 109 stores, opened its first outlet in 1997. It floated in 2005 and its shares reached as high as 357p in January 2007 as the property market approached its peak.
But the stock was suspended at less than 3p yesterday - valuing the entire company at just £1.06 million.
Land of Leather was forced to raise £15 million from shareholders last June to keep the business from going under.
The group is suffering alongside other big ticket retailers from the economic downturn. Total sales orders fell by 47% in the three months to November 2.
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