Land of Leather creditors to receive 9p in the £

No-one LoLs.

By Insolvency News, 21 September 2009. Posted in Corporate

Creditors to Land of Leather, the furniture retailer that fell into administration in January this year, are set to receive just 9p for every £1 they are owed by the company.

Unsecured creditors, who are owed more than £37m, will be paid a dividend of up to 9pc, according to administrators Deloitte, the accountancy firm.However, the administrator warned that the final level of unsecured claims could ultimately be materially impacted by litigation brought against Land of Leather in relation to alleged toxic chemicals in sofas supplied in 2007.

The failed company is the subject of a class-action suit brought by consumers who allegedly suffered burns from the sofas. The sofas were supplied by a Chinese manufacturer, Linkwise, which it is claimed had inserted sachets of a chemical into the sofas' lining to prevent mould growing during shipping.

Comments What do you think?

  • Anthony | 20:52 25 September 2009

    As many creditors will be innocent purchasers who paid up-front for furniture they never received, how much of their fees will the over-paid administrators and accountants be waiving to ensure the innocent customers receive a better payout?

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