Land Of Leather Share Discussion Threads

[trojan] 10/12/2008 11:31

Landlords walking around with large chains and big pad locks on Xmas eve!!!! Nice :(

A proper business would have built the money up and put it aside for the Dec rents, but this company has been badly run for far too long imo, with or without the credit crunch!!!

[loganair] 10/12/2008 11:27

LAN has been burning cash at a rate of at least £1m a month. If in November it had just £2.4m spare cash, by the time the rent is due LAN may have as little as £1.4m cash to pay its £6m rent bill.

As I look at it, I'm afraid to say - LAN is a Goner

[still waiting] 10/12/2008 10:58

watch for the first landlord to look to wind this up Xmas eve.

It's KNACKERED.

[loganair] 10/12/2008 10:55

Todays FT: The lossmaking sofa retailer has abandoned discussions with potential bidders just a week after it confirmed the talks, and decides to focus on raising cash to pay ian impending £6m rent bill.

The company is in a precarious state as it tries to generate enough money in a bleak trading environment to pay its landlords on December 25. It said last week that sales orders almost halved in the three months to November 2.

On that date, LAN had £6.9m in cash. However, £4.5m of that is unusable collateral demanded by Barclays in return for credit card clearing facilities, leaving it with less than half the money needed to meet its quarterly rent bill.

The bill, though, could not fall on a worse date. Unlike other retailers, sofa sellers do not usually bring in much money in December until Boxing Day, when traditional annual sales begin.

[trojan] 10/12/2008 10:42

DFS are fine for a cheap sofa, but I would not touch them for a decent one!!!!

They were in the top 10 TV advertisers, not sure if they still are or not!

[csmwssk1] 10/12/2008 10:38

Upshot is sofas are a terrible thing to try and shift in a recession, heard yesterday that a certain 3 letter major sofa company (not scs) is consistently seeing 20-30% weekly sales declines despite major advertising campaigns, and thats the best in the business, more will follow these next year.

[trojan] 09/12/2008 11:27

Agreed, wouldn't touch it, even with yours!!! ;)

[still waiting] 09/12/2008 10:01

whichever way you look at it, there is no value left here for P.I's

[trojan] 09/12/2008 09:42

SW..

Majority of thier stock is still leather (sorry leather match!!!) and the market is not as strong for just leather as fabric sofas are picking up again, or so I am told!!!

I know what you mean though, I also think there will be a buyer for some of thier stores as Steinhoff will make use of any prime sites to relocate any Harvey's stores as well as some decent stand alone Bensons sites imo!!

Interesting few weeks a head methinks!! ;)

[still waiting] 09/12/2008 09:36

but would it, the admin. will have a closing down sale with whatever stocks they have left to earn them a big fat admin fee.

that'll not help the others.

[trojan] 09/12/2008 09:32

That's a big call, but can't help but feel they will get some support to trade through "Peak" to see if it picks up for them!!

For the other retailers, it would be good news for them to go before the New Year of course!!

Tick tock

[still waiting] 09/12/2008 09:23

I can't see them getting the rent cheques away without trading whilst insolvent.

expect the administator to be called in Xmas Eve.

[the big fella] 09/12/2008 09:21

Priced to go bust and most likely will within 6 weeks.

[empirestate] 09/12/2008 08:55

is the mcap of 2.4m based on share price on advfn correct?

[still waiting] 09/12/2008 08:06

looks like they're holding out for £2 for the company!!!

[trojan] 09/12/2008 07:59

They said no as it had no value to shareholders, so the difference to now is ...............!!

I hear (so could be wrong) that they are closing early on thier late nights, opening hours on the website remain the same, saving a few pennies on electric???????????

[safari7] 09/12/2008 07:56

yeh back to 5.75p probably.

[trojan] 09/12/2008 07:39

And down it goes again!!!!!!!!!

[trojan] 03/12/2008 16:55

Yep, indeed, but our banks are a lot better off imo than they are making out!

The chance to get some tax payers cash for a bit of pain of having the government as a shareholder (for now)was too good to turn down, methinks they are hoarding cash and we be quick to snap up other finance companies prior to any recovery.

Whether the government really has the clout to then force them to help out our big companies will be another thing all together imo!!

[csmwssk1] 03/12/2008 10:50

some truth however at least the US has alot of big cos that can start to bring in corp tax when it turns, we havent, most of what we thought were our powerhouses are now effectivley broke.

[csmwssk1] 02/12/2008 14:57

would not be opportunistic, stupid would be more appropiate, if anyone thinks next year will be easier they are in cloud cuckoo land, look to the states, they are nearly a year ahead, when they start to see a upturn, we will follow apx 9 months later, at the mo they have 16% house price falls in a quarter, car sales down 45%, we have not seen anything like as hard as it is going to get, if I remember last year lan said sales were down apx 20%, now they are down 47% on that, so how down on 2 years ago and how will they do in another year if sales half from here, if any one offers them a £1 for the lot they will need very deep pockets to keep going, as stated earlier in the year, you need circa £100m to keep lan going till late 2010. dyor.

[loganair] 02/12/2008 11:48

LAN only has £2.4m spare cash, not enough ot pay for the next 3 months rent and why has asked to pay rents on a monthly basis.

"The company is debt-free but £4.5m of its capital of £6.9m is held by its banker, Barclays, as insurance against having to repay credit card payments if goes bust.

A company insider said any attempt to buy Land of Leather at its current share price would be "opportunistic".

[boffster] 01/12/2008 13:34

In a high margin, fixed overhead business like this, a nigh on 50% decline in sales is terminal, IMO.

[still waiting] 01/12/2008 13:03

banks aren't passing any rate reductions on, they are increasing rates and adding a risk premium to any debt they think is risky.

it's a nightmare out there, it's not interest rate risk now its credit risk as well, co's are going bust on each other now which is having knock on effects on their own bank borrowings.