Troubled beds firm facing administration

Bed retailer Sleep Depot is poised to go into administration after the failure of a financial rescue attempt, its biggest trading partner said today.

Land of Leather said the business, which operates concessions within 71 of its stores, had been struggling amid “very challenging” market conditions.

The furniture store told of Sleep Depot’s hopes for a refinancing during a trading update last week.

But it said today: “Land of Leather understands that this restructuring has failed and that application has been made to put Sleep Depot into administration.”

Blackburn-based Sleep Depot’s website said it trades from more than 100 stores across the UK, including within curtain chain Paul Simon.

Land of Leather said it earned £4.8m (€6.04m) in annual rent from the retailer.

Its loss will be the latest trading blow for Land of Leather, which saw like-for-like sales slump 16% during its first half to January 26.