Land of Leather in crisis
Furniture store Land of Leather went into administration this afternoon, placing 850 jobs at risk.
Shares in the company were also suspended as it tackled a financial crisis. Accountants Deloitte, appointed administrators, will attempt to find a buyer for 109 stores, including branches in Wednesbury and Cannock.
Land of Leather said today it had requested the suspension of its shares "pending clarification of the company's financial position".
Sources have suggested that the retail chain is free of debt, but needs emergency working capital in order to keep trading.
Last week rival chain Sofa Workshop said it had begun moves to appoint administrators. Land of Leather saw its sales plunge 47 per cent in the three months to the beginning of November.
The chain opened its first store in 1997 with the aim of bringing affordable leather sofas to the mass market. The firm floated in 2005 and its shares reached as high as 357p in January 2007. But they were suspended at less than 3p today – valuing the entire company at just £1.06 million.
Land of Leather on Wolverhampton's Peel Retail Park, in Stafford Street, closed months ago. Outlets were continuing to trade today at Wednesbury's Axletree Way and near Cannock's Longford Island.
* Meanwhile administrators at struggling Waterford Wedgwood confirmed today that 367 workers have lost their jobs.
