Land of Leather goes into administration

Furniture retailer Land of Leather has been placed in administration this afternoon (January 12). The move follows its stock market trading suspension earlier today after months of speculation over its future.

The retailer announced last October its profits had crashed by £16.2m, from £18.5 million to £2.3 million in the year to August 3rd 2008.

Administrators Deloitte hopes to sell the 109 UK and Ireland stores, which will remain open, as a complete on-going concern.

In a statement to the stock exchange the retailer blamed the move on “challenging market conditions as a result of the credit crunch and lack of consumer spending on bigger ticket retail purchases”.

The statement says that the January sale has failed to boost the chain’s fortunes, and that a “lack of liquidity in the banking system” prevented it from finding a way to avoid calling in the administrators.

Land of Leather’s marketing director Peter Ling resigned last month following a decision to slash the advertising budget in 2009. The retailer spent £21.4m on advertising in the last financial year.

Meanwhile, high street book retailer Waterstone’s has this afternoon (January 12) confirmed it is consulting with store staff over a number of redundancies prompted by changes to its supply chain management.

The announcement comes ahead of a trading statement by its parent company HMV, which is expected on Thursday.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here