Land of Leather had Sleep Depot concessions in 71 shops, all of which closed this week. The sofa specialist is likely to trade from the 46 concession areas remaining after filling the 25 units.
A Land of Leather spokesman said: “There is strong interest from other concession partners and there is the option of extending the Land of Leather trading space.”
Aside from the Land of Leather concessions, Sleep Depot operated 31 concessions in Paul Simon and nine independent stores. Its demise will result in 367 job losses.
James Gleave, partner at administrator Kroll, said: “The trading environment for all retailers is particularly tough at present. Following a thorough evaluation, we have regrettably concluded that it is impossible for Sleep Depot to continue to trade.”
Land of Leather said in last week’s half-year report that Sleep Depot was finalising a financial restructuring but, because of the challenging market conditions, the restructuring failed.
The retailer’s annualised rent from Sleep Depot amounted to£4.8 million. The loss of that income will be£1.6 million in the remainder of the financial year, but will be mitigated to some extent by Land of Leather trading from the vacated space.
Land of Leather’s like-for-like sales order intake fell 16 per cent in the 26 weeks to January 27 and total sales orders were down 4 per cent. Revenue rose 15 per cent to£133.3 million and pre-tax profit fell from£8.4 million to£5.5 million.
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