Just as the deputy Director General of the CBI, John Cridland, was urging the government to help ease the flow of credit from the banks, The Land of Leather, furniture retailers, flopped back onto the sofa today, having given up the fight against going into administration. The company echoed the CBI by blaming it’s demise on the lack of liquidity in the banking sector, as well as bemoaning the consumer spending downturn during a poor sales season.
Recent interest cuts in the Bank of England rates apparently led to severe cuts in rates for the banks’ savers, but weren’t mirrored in rates cuts to bank borrowers. It’s the same old story that we’ve heard for months. Until the money supply is freed up to consumers and companies, the liklihood of more Land of Leathers going pear shaped will prevail.