Furniture chain jobs under threat

Furniture chain Land of Leather, which has five stores in Northern Ireland, has called in the administrators.

Up to 50 jobs are understood to be under threat in Northern Ireland. The chain has 109 stores across the UK and in the Republic.

The company blamed the credit crunch and lack of consumer spending on larger household items.

It said it had made every effort to reduce costs, but results from the January sales were very disappointing.

Land of Leather has three stores in the greater Belfast area - at Boucher Road in south Belfast, Dunmurry and Newtownabbey. It also has two further stores in Londonderry and Newry.

Talks with potential bidders ended in December after the company, which employs a total of about 850 people, said the offers gave "insufficient value" for shareholders.

The Kent-based firm said it had appointed Lee Manning and Nick Edwards of Deloitte as joint administrators.

Customer protection

"The administrators are working closely with the management to protect the interests of customers who have paid deposits on furniture orders," said a company spokesman.

"We have taken a number of steps both to protect customers and to inform them of how the administration affects their circumstances."

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

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

"However, it is the objective of the administrators to sell the business as a going concern and have all deposits honoured", added a Deloitte representative.

Stores are open for business as usual, but Deloitte is urging customers who have paid deposits to use the sales hotline, email enquiry address and website, rather than to visit the stores, unless they aim to pay the balance on goods ready for delivery.

Consumers have been cutting their spending as a result of the economic slowdown, hitting sales of items such furniture.

Concerned customers can call dedicated hotline 0800 496 0868 or email enquiries to lol@deloitte.co.uk