Land of Leather has suspended its shares on the London Stock Exchange.

The suspension follows recent speculation over the future of the furniture retailer, which has been hit hard as the housing market slumps and consumers rein in spending.

In a statement the retailer said: “The company has requested a suspension, with immediate effect, of trading of its ordinary shares on the official list, pending clarification of the company's financial position.”

Last month Land of Leather ended talks with parties interested in buying the business, saying the offers failed to deliver shareholder value. Those interested included Sun European, which bought rival furniture chain ScS out of administration last year.

In December Land of Leather revealed total sales orders in the three months to November 2 had plummeted 47 per cent.