| Type | Plc |
|---|---|
| Industry | Furniture retail |
| Fate | In administration with Deloitte |
| Founded | 1997 |
| Headquarters | Kent, UK |
| Number of locations | 2 as of 15th September 2009 (109 December 2008) |
| Area served | UK and Ireland |
| Products | Furniture |
| Employees | 850 (December 2008) |
Land of Leather was a furniture retail store based in Northfleet, Kent in the United Kingdom. It operated in the United Kingdom and the Republic of Ireland.
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Land of Leather was founded in 1997, and in 2005 the company was floated on the London Stock Exchange with the assistance of the investment bank, Investec, using the symbol LAN.[1] As of December 2008, the company employs 850 people in its 109 stores in the UK and Ireland.[2] In mid-2008 Land of Leather issued profit warnings, and was planning to raise £15 million through a new share issue.[3]
In December 2008 Land of Leather's announcement that they were in buyout talks with a number of interested parties, caused their share price to rise by 38.5%.[4] However these talks ended later in December citing "insufficient value for shareholders".[5]
On 12 January 2009 Land of Leather Holdings plc announced that they had entered administration. Lee Manning and Nick Edwards of Deloitte are joint administrators.[6] The company was debt-free, but it was unable to secure additional funds. The company cited reduced consumer spending and the state of the banking market at the time as the causes.[3][7] The administrators are aiming to sell the company as a going concern.
Customers who paid a deposit by credit card or Visa debit card, or by any means since 26 December 2008 are fully protected. If their original order cannot be fulfilled, customers who paid a deposit by any means other than credit or Visa card before 26 December 2008 will be offered a discount on other items.[6]
On 26 January 2009 it was announced that 33 stores would close, leaving 76 stores.[8]
Land of Leather sold Linkwise sofas made in China which contained sachets of the mould-inhibiting chemical DMF. This caused serious rashes to more than 300 users, due to an allergic reaction. Land of Leather had an insurance policy with Zurich Financial Services, but the insurer refused to pay out, claiming that Land of Leather had breached policy terms. This position was accepted on 18 March 2010 by the High Court of England and Wales[9], and purchasers will not be indemnified by the insurer.