Land Of Leather Reported To Be In Refinancing Talks
Sofa retailer Land of Leather is reported to be in talks about refinancing the company’s debt after a sharp downturn in trading added to the recent pressures of the Group. The company was recently in the headlines after being fined £210,000 for mis-selling insurance protection but it seems that this may be the least of the company’s troubles.
Closely linked to the housing market, it is not a surprise to see the group experiencing difficult trading conditions in what has for some time been a very competitive sector. In March the group confirmed that it had £16 million in cash, a revolving credit facility of some £5 million and a £1 million overdraft. However, profits for the first half tumbled form £8.4 million to £5.5 million and the group also confirmed that is owes creditors some £53 million.
While reported talks with Barclays bank have not been officially confirmed, sources close to the action have indicated that discussions are still on going. The fact that the shares have fallen from 124p at the start of the year to just 15.5p yesterday is a concern and reflects the worsening trading conditions. We await the outcome of talks after which the future of the group may be a little clearer.
Share this..
Related stories
MPs expenses back under the spotlight
There are rumours and counter rumour circulating around the House of Commons today with regards to MPs expenses and the potential for the infamous second home allowance to be withdrawn. Sir Christopher Kelly, the head of the powerful committee on standards in public life, is rumoured to be about to suggest that the second home allowance is withdrawn and MPs simply pay rent on properties they have...
Read MoreIs The MSN And Yahoo! Love Match Back On
After a great deal of disbelief in the markets after MSN and Yahoo! recently announced that takeover / merger talks were over it seems that pressure from shareholders on both sides has pushed the parties back together. While officially they are in discussions about a possible advertising joint venture there are many in the market who believe this is a cover story for re-ignited merger talks. M...
Read MoreIs Gordon Brown Moving The Fiscal Goal Posts?
After it was announced that the UK government has borrowed a staggering £24 billion in the first quarter of 2008, the highest level since records began back in 1946, there are grave concerns in the City that Gordon Brown is set to move the fiscal goal posts.
Rather than face the embarrassment of breaking his own fundamental rules on financial spending, rumour has it that we may see...
Cadbury law would have been irrelevant
Today's release of the Labour Party manifesto includes the so-called "Cadbury law" which the government has been putting forward as a means of stopping recognised UK companies, utilities and infrastructure companies from being taken over by overseas competitors. However, it looks as though the so-called "Cadbury law" has been watered down somewhat and will only take in utility companies and infras...
Read MoreManufacturing sector looking positive into summer
Productivity in the UK manufacturing sector is showing signs of improvement following a muted first quarter, figures show.The Office for National Statistics (ONS) revealed today that output in UK manufacturing industries rose by 0.3 per cent between March and April. All industries showed growth, with the transport equipment sector leading the way on 0.9 per cent growth.These figures mean overall o...
Read More