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Bidders take a look at Land of Leather
01.12.08
Struggling furniture stores chain Land of Leather today confirmed it has received early takeover interest, but also warned that trading has recently become even worse.
Shares in the group rose 3½p to 10p, valuing it at just £3.5 million. Less than two years ago, the shares were trading above £29 and the chain was valued at more than £1 billion.
Land of Leather said orders had slumped by 47% in the three months to 2 November compared with a year ago. It said it was debt free with £6.9 million cash in the bank. It added that it expects trading to remain "challenging and uncertain for the remainder of 2008 and 2009, which includes the important January sale period".
Potential bidders for the 100-strong chain include Hilco, the turnaround specialist that looked at bidding for Woolworths and is now advising the administrators, and private-equity group Sun European Partners, which bought ScS Upholstery earlier this year.
