Land of Leather shares dive

Shares in furniture retailer Land of Leather have plunged after talks with potential buyers collapsed.

In an announcement to the stock exchange, Land of Leather said early-stage discussions have ended after concluding there would be "insufficient value to shareholders".

Last week, the company said it had received unsolicited approaches from a number of interested parties, thought to include turnaround specialist Hilco and Sun European.

Shares in the company were 22 per cent down by 08:52 GMT on the news as investors feared yet another high street retailer could be in trouble.

In the three months to November, sales at Land of Leather fell 47 per cent as consumers put off large purchases and the house market slumped.

In addition, furniture retailer MFI recently collapsed, fuelling concerns about the sector.

However, the company has £6.9 million in cash, no debt and emphasised it has no reason to go after a sale unless it will increase shareholder value.

This morning, figures from the British Retail Consortium show like-for-like sales fell 2.6 per cent on an annual basis.