Land of Leather, the struggling furniture retailer, suspended its shares this morning pending ‘clarification of the company's financial position.’

It said a further announcement would be made as soon as possible.

The retailer’s shares fell to 3.2p before shares were suspended and experts believe an administrator is being lined up in case its situation deteriorates.

The 109-store retailer remains debt free but it is thought it needs working capital to continue trading.

As revealed by Property Week last week, it wrote to landlords before Christmas to reduce its rent bill otherwise it said it would be forced to put itself into ‘some form’ of administration.