Furniture retailer Land of Leather has appointed Deloitte as administrators in the UK.
Land of Leather, which announced a suspension of its shares on the London Stock Exchange earlier today, said it would be making a further announcement as soon as possible.
The company, known for its cut price deals, said it had requested a suspension of its share trading 'pending clarification of the company's financial position'.
Land of Leather had seen orders plummet by 47% in the three months to November.
The company was approached by several firms interested in buying it at a bargain price in November, but those talks quickly collapsed as the company declared the bids provided 'insufficent value to shareholders'.
The company has been affected by the weakness of sterling and a drop in sales in recent months.
Land of Leather opened its first store in 1997 with the aim of bringing affordable leather sofas to the mass market.
The firm floated in 2005 and its shares reached as high as 357 pence in January 2007 as the property market approached its peak. But they were suspended at less than 3p today - valuing the entire company at just £1.06m sterling.
Land of Leather has 11 stores here and five in the North. It has 98 stores across the UK and employs about 850 people.
Land of Leather's website has been taken down this afternoon and remains unavailable without contact numbers. The 11 stores here currently remain open.
