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Land of Leather has received several bids for the business as its share price dives.

In a statement to the stock exchange the furniture retailer's board said it has "received a number of unsolicited early stage expressions of interest from third parties", adding these may not become actual offers for the group.

However, with no debt and the share price so low – shares were trading at around 9p this morning – the company said it had no requirement to pursue a sale unless it realises shareholder value.

The company did not name the interested parties but it has been reported Hilco, the firm that pulled out of talks to take over Woolworths, may be interested.

For the last quarter, sales fell 47 per cent amid "challenging" conditions, Land of Leather said.

As with other furniture retailers, the company is suffering from the housing slump and consumer reluctance to spend on big-ticket items.

Last week, rival retailer MFI went into administration, blaming the tough economic conditions.

However, Land of Leather highlighted its lack of debt and its cash balances of £6.9 million, although £4.5 million of this is kept back by Barclays to repay credit card payments in the event the company goes bust.

The company warned the first half of the year will be particularly difficult due to low orders, tougher sales comparatives and the weak pound.

"We expect market conditions to be challenging and uncertain for the remainder of 2008 and 2009 which includes the important January sale period," the company said.

As a result, the outcome for the financial year ending August 2nd 2009 is extremely difficult to predict, Land of Leather added.