Land of Leather, the furniture retailer, has suspended its shares on the stock market because of the collapse of sales and after 3 profit warnings. Yet again, another victim of the recession and of Brownian (dis)economics.
Why do I blame Labour? Simply put, Brown stoked up an economic boom – which many of us thought we benefited from, with rising house prices and illusive prosperity – and then a bust.
The illusion of prosperity sent property prices into orbit and now back down on terra firma (or terra cotta as John Prescott once called it). Until last year, people were buying loads of furniture, largely “on the never never”, for their new houses that they bought at 5 times their earnings – and which they believed would double in price.
Now people aren’t buying houses. And they aren’t buying from Land of Leather.
Hence, this is one of many casualties to come — and many more workers who must surely fear for their jobs.
Brownian (dis)economics is the “Labour boom and bust” that Brown said many times would not happen on his watch. Well, it has again, and Land of Leather is but one of thousands of firms that will tragically fail this year.
Mountjoy