Former type Plc Defunct 2009 (2009) Ceased operations 2009 Number of employees 850 | Industry Furniture retail Headquarters Kent, United Kingdom Founded 1997 | |
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Fate In administration with Deloitte Number of locations 2 (September 2009) 109 (December 2008) Parent organization Land of Leather Holdings Plc | ||
Land of Leather was a furniture retail store based in Northfleet, Kent in the United Kingdom. It operated in the United Kingdom & Ireland.
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The company was hit hard by the downward slope in the United Kingdom's housing market which was brought about by the decline in demand, due to a lesser number of people buying and moving homes.
History
Land of Leather was founded in 1997, and in July 2005, the company was floated on the London Stock Exchange, with the assistance of the investment bank, Investec, using the symbol LAN. In December 2008, the company employed 850 people in its 109 stores in the United Kingdom & Ireland. In January 2009, Land of Leather issued profit warnings, and was planning to raise £15M through a new share issue.
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%. However, these talks ended later in December citing "insufficient value for shareholders".
2009 administration
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. 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. The administrators are aiming to sell the company as a going concern.
On 26 January 2009, it was announced that 33 stores would close, leaving 76 stores.
Soon after, the remaining Land of Leather stores closed down, and the company ceased trading in early 2009.
"Toxic sofa" lawsuit
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, and purchasers will not be indemnified by the insurer.