Furniture retailer Land of Leather has become the latest victim of the credit crunch and have called in the administrators. The firm was trying to raise some extra capital in December, but when that failed they were forced to go into administration. The company said that it had cut costs, but current economic conditions were tough and January sales had been ‘disappointing’.
Land of Leather joins a long list of companies that have struggled during the credit crunch, including high profile US bank Lehman Brothers who filed for bankruptcy in September and retailer Woolworths who went into administration in November.
Deloitte have been appointed as administrators and stated that they are, “working closely with the management to protect the interests of customers who have paid deposits on furniture orders.”
And added: “We have taken a number of steps both to protect customers and to inform them of how the administration affects their circumstances.”
Customers who paid their deposit by credit or Visa debit card, or have paid their deposit after December the 26th are protected. Other customers who paid in cash or non-Visa cards before December the 26th will be offered discounts or alternative stock if the original order cannot be met.
Land of Leather, which owns 109 stores in the UK and employs over 850 staff will be open as usual, as Deloitte looks for a buyer.
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