Land of Leather was on the verge of an £18 million financial re-upholstering as Retail Week went to press, but even mid-week, the deal still hung in the balance.

Assuming a successful conclusion, the retailer – which will reveal it expects to make a pre-tax and exceptionals profit of at least£2 million this year – will make operational changes to enhance its appeal.

Land of Leather has been seeking investor support for an underwritten equity fundraising. A City source said that, as part of its pitch, the retailer has outlined plans to introduce a fabric sofa range and more aspirational products.

Land of Leather is understood to have a market share of about 13 per cent, compared with leader DFS’s 20 per cent.

Big-ticket retailers have been among those worst hit by the downturn. Both Land of Leather and rival ScS have had some supplier credit insurance withdrawn.

The outlook for ScS remained uncertain as Retail Week went to press. The retailer is hunting for extra working capital, but has not indicated how the search is going.

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