Land of leathers’ 109 stores in difficulty. Economists urge government to come up with a plan.

More gloom on the economic front as Land of Leather shares have been suspended on the London stock exchange and administrators have been called in. In the Republic, Land of Leather employs 84 people in its eleven stores. In Northern Ireland it has five stores.

Update: A special conference in Dublin attended by 200 economists urge the government to come up with a credible plan to deal with the turmoil in the public finances and the difficulties in the housing market. It is noted that the down turn for Land of leather is partly seen as a consequence of people not moving home as much. There was also strong support for a cut of around 10% in public sector pay….

  • Glencoppagagh

    Sorry Kathleen, but I think the demise of a few furniture shops is pretty small beer. It should make a lot of animals happy though.

  • Kathleen

    Glencoppagagh, maybe so. You could look at it like that, but it adds to dole queues as potentially another high street name bites the dust. As it says in the video, who’s to know who is going to survive? This is simply the latest in a growing number of business’ struggling or going under.

  • NP

    Kathleen could you spend your time explaining to me what “ENTROPY” is rather than wasting it on redundant retail options.

  • Kathleen

    NP

    wasting it on redundant retail options.

    You think its a waste of time blogging that 109 stores are in difficulty with the loss of work that would entail in struggling economies? If its a waste of time to blog it, its a waste of time to comment on it, so I’ll not keep you any longer, you’ll be hurrying off to use google to answer your own enquiry….

  • aquifer

    It is hard to argue that the banks have not priced risk correctly while paying more than private sector rates for secure public sector jobs with gold plated pensions. There is low pay in the public sector, but please tell me why people get incremental increases while doing the same job.

  • Reader

    “There was also strong support for a cut of around 10% in public sector pay…”
    Tricky: 10% off public sector pay, and 10% off private sector jobs. Of course, most of us have made our initial decision long ago, and maybe without considering the possible downside.

  • Comrade Stalin

    Kathleen,

    It does fundamentally suck, but we have to look at the business model here, which is selling people furniture that they basically don’t need using the credit borrowed from the equity of their houses. People have been replacing things like their cars, their furniture, and other things in their houses much more frequently than they did, say, 30 years ago. That largesse is now stopping and no amount of government intervention can stop it.

    Let’s turn the question around. Are you planning to buy a new leather suite ? If not, doesn’t that mean you’re responsible for putting these people out of work ? I’m sure this is not the way you see it. It’s not the way David Cameron would see it either.

    We need to retool the economy. Retool it to do what – I don’t know. But lending people yet more money to rack up more debt to buy things they do not need will not work, and it will not restore confidence in the economy.

  • niall

    Unfortunately this just has to happen Kathleen.

    It is evident now which companies completely over cooked it on credit. I suspect many of the executives in such companies kew what was coming but with the banks consent they kept recklessly driving market share to cash out bonuses and shares.

    The house Ponzi scheme cannot be revived, it was a run away train for the guts of a decade in Ireland .

    NO government policy can re-inflate the bubble from Dublin.

    The UK can inflate it’s way out of this mess by quantitative easing. It’s not without risk but while the republic has to deflate an economy almost entirely without value (taxi drivers paid more than UK based Dr’s) the UK has a few more tools to throw at things.

    Therefore we are looking at short term deflationary pressures with the thrashing of sterling by cutting interest rates to be followed by rampant inflation.

    Average wage hits 40k in NI and our debt to income ratio is “fixed”.

  • Kathleen

    Average wage hits 40k in NI and our debt to income ratio is “fixed”.

    Nial in the south they’re talking about ‘competitiveness’ – cuts in public sector pay to bring them into line with the UK, or if possible lower.. So if we’re bad they’re worse 🙂

    Comrade while I agree with your basic argument the tightening of belts in the republic won’t be smooth in my view, I predict a bit of public unrest over it….

  • Rory Carr

    Some comfort here at least insofar as we may have something completely novel to which to look forward – a Land of Leather sale!

  • Public Sector

    Just wanted to add something here. I work in the public sector. I’d happily agree to 10% off my wages for the coming year.

    IF I knew that it wasn’t going to bolster some bank somewhere. Where I work is experiencing very bad unemployment. I’d like to see my ten percent going into a vocational scheme, or supporting something worthwhile, not supporting a banking sector which then refuses to lend credit to small businesses.

    By the way, I am on about 19k a year. So are many of my colleagues. I am not married and have no kids. Many of my colleagues do, so it may not be so easy for them to agree.

    Anyway – no one has put such an option to us.

  • Comrade Stalin

    Comrade while I agree with your basic argument the tightening of belts in the republic won’t be smooth in my view, I predict a bit of public unrest over it….

    You mean, you think the government might actually confront the overpaid public sector down there ? Doubt it.