The sofas specialist disclosed on Tuesday that talks about a potential sale are over.
Land of Leather was refinanced earlier this year when it suffered in the downturn. It has taken radical action to conserve cash and cut costs.
Singer Capital Markets analyst Matthew McEachran said: “Pressures begin to alleviate from Boxing Day, once the winter Sale has commenced.”
It was reported that the retailer is having to focus on raising cash for its forthcoming rent bill of£6 million. At the start of last month the retailer, which is debt free, had£6.9 million in cash but much of that is for ensuring credit card clearing facilities.