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Fastest-growing firm to administration in seven years - Land of Leather's demise

Land of Leather has been struggling for several months following consumer belt-tightening and the slump in property sales. File image
Land of Leather has been struggling for several months following consumer belt-tightening and the slump in property sales. File image

In 2002 Land of Leather was named fastest-growing business in the county.

Now the Northfleet-based retailer with 109 outlets, including Gillingham, Maidstone, Canterbury and Orpington, has joined the lengthening casualty list of shop chains plunging into administration.

More than 1,000 jobs - 113 in the county - are at risk if administrators at Deloitte fail to find a buyer. The company employs 90 in the Northfleet head office operation, seven in Gillingham, six in Maidstone, five in Canterbury and five in Orpington.

Although Land of Leather was named fastest-growing Kent company in the annual MegaGrowth50 survey seven years ago, it has been struggling for several months following consumer belt-tightening and the slump in property sales.

Big-ticket items have been hammered by the economic downturn, with Land of Leather sales crashing by 47 per cent in the three months to November 2.

In October, it announced annual pre-tax profits had dived to £2.3million, down from £18.5million the previous year, while like-for-like sales orders had fallen by 28.9 per cent. Company chiefs had been trying to re-finance or sell the business.

Joint administrator Lee Manning said: "The Land of Leather stores will continue to trade as normal, while the administrators continue to talk to interested parties with a view to concluding a sale of the business as a going concern.

"The administrators are working closely with the management to protect the interests of customers who have paid deposits on furniture orders. We have taken a number of steps both to protect customers and to inform them of how the administration affects their circumstances."

All customers who have either paid a deposit by credit card or Visa debit card, or indeed have paid a deposit by any means since December 26 are fully protected.

Any customers who paid a deposit by cash or by a non-Visa debit card before December 26 will be offered a discount on other stock if their original order cannot be fulfilled.

However, administrators said they wanted to sell the business as a going concern and have all deposits honoured.

Concerned customers are advised to contact a dedicated hotline on 0800 496 0868 or email enquiries to lol@deloitte.co.uk >>>

Mr Manning added: "Land of Leather's website is also updated regularly. While stores are open for business as usual, we urge customers who have paid deposits to use the hotline, email enquiry address and website, rather than to visit the stores, unless it is to pay the balance on goods ready for delivery.

"Where customers have been given a scheduled delivery date or have been advised goods are awaiting payment of the balance before delivery can be made, these deliveries and orders will all be fulfilled."

Customers who have bought items from concessions based within Land of Leather stores are unaffected by the administration.

Last week, rival chain Sofa Workshop, with an outlet in Tunbridge Wells, said it had begun moves to appoint administrators.

Other recent victims of the downturn include Woolworths, Zavvi, The Officers Club, Viyella and Adams chidrenswear.

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