Land of Leather agencies are waiting for news
Land of Leather's marketing agencies look likely to be hit after the furniture chain became the latest victim of Britain's retail crisis this week.
The 109-store chain – which has worked closely with Bournemouth-based Walker Agency and Manchester's MediaVest - called in Deloitte as administrator after enduring a miserable start to the new year sales and being unable to secure emergency working capital facilities from banks.
The Walker Agency has worked with the retailer for three years and took Land of Leather on TV throughout 2008. MediaVest listed the firm among its 'key clients' in the RAR Top 100 survey, published in The Drum last December.
Neither agency was willing to comment at the time of writing.
Furniture stores have suffered in the recession with consumer confidence shattered and fewer people moving house. Furniture brands MFI, The Pier, ScS Upholstery, Ilva, Floors 2 Go and Sofa Workshop had already been stung by the downturn before Land of Leather's collapse.
It is understood that Land of Leather spent £21.4m on advertising in the last financial year but had already planned to significantly reduce its marketing spend in 2009.
The resignation of its marketing director, Peter Ling, in December coincided with the decision to cut the budget. His responsibilities were taken up by the firm's marketing manager, Sian Morgan.
Despite already feeling the pinch as 2008 drew to a close, Land of Leather continued with its Christmas and New Year ads which had already been booked.