Land of Leather has been placed into administration.

The retailer has blamed the collapse on the “challenging market conditions as a result of the credit crunch and lack of consumer spending on bigger ticket retail purchases”.

Lee Manning and Nick Edwards from Deloitte have been appointed as administrators.

Land of Leather said it failed to secure additional funds due to the “exceptionally difficult trading conditions and the lack of liquidity in the banking system”.

In a statement it said: “The company has made every effort to reduce costs and conserve cash, but market conditions have continued to be difficult and the results from the January Sale have been very disappointing.

“The company is debt free and during the last year the directors have vigorously explored every available option to obtain working capital facilities for the business.

“The board has pursued other strategic options including the sale of the company as a going concern.”

All 109 stores will continue to trade as normal as Deloitte seeks to sell the business as a going concern.

Land of Leather said it has taken all the necessary steps to ensure customers who have paid deposits for furniture are protected.

Others to have hit the buffers in recent weeks include fashion retailer Viyella, children's clothing company Adams and entertainment retailer Zavvi.