KPMG lends Land of Leather hand on refinancing

KPMG is advising
struggling furniture retailer
Land of Leather
said to be under pressure from a sharp downturn in sales and rising costs – on
the renegotiation of its banking facilities before its year-end in July.

The company had a ?16.3m cash balances in March, but as trade worsened it was
forced to renegotiate with its bank where it has a revolving credit facility of
?5m, which was reduced from ?7m pounds last year, and a ?1m overdraft facility.

The retailer owes ?53m to suppliers and other creditors, according to
interactive investor.

The retailer’s hopes that the bank holiday weekend would help put the
company’s finances in better shape were dashed by bad weather combined with low
consumer confidence.

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