4:38pm Monday 12th January 2009
Furniture chain Land of Leather has gone into administration after attempts to sell the firm failed.
The company, who own a store in Purley Way, Croydon, said it had tried to cut costs and stay afloat but the economic downturn meant the January sales had been "very disappointing".
It entered talks with potential bidders in an effort to raise extra money but they ended in December after it said the offers received gave "insufficient value" for shareholders.
Land of Leather, which employs 850 people, issued three profit warnings in 2008 as sales slumped.
The Kent-based firm said it had appointed Lee Manning and Nick Edwards of Deloitte as joint administrators.
A statement said: “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 those who either paid a deposit by credit card or Visa debit card, or who have paid a deposit by any means since December 26 are fully protected, said Deloitte.
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, it is the objective of the administrators to sell the business as a going concern and have all deposits honoured", added Deloitte.
The Purley Way store is open for business as usual, but Deloitte is urging customers who have paid deposits to use the sales hotline, email their enquiry address and visit the website, rather than visit the stores, unless they aim to pay the balance on goods ready for delivery.
Concerned customers can call dedicated hotline 0800 496 0868 or email enquiries to lol@deloitte.co.uk
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