Struggling Blacks Leisure Put Up For Sale

Outdoor clothing specialist Blacks Leisure has been put on the market after the ailing retailer failed in its efforts to find fresh investment – sparking a new share sell-off.
Blacks, which has made a loss for the past five years, confirmed it was seeking a sale or part-sale after talks with shareholders and potential new investors fell short of its expectations.
Its (Euronext: ALITS.NX – news) share price fell a further 53% on opening after a month-long period that has seen its value halved.
In November, Blacks warned that its latest results would be substantially below expectations.
It was particularly badly hit by the warm Autumn – with poor demand for winter coats and boots – and previously said that it needed extra cash in order to “execute its strategic plans” and was considering new financing options.
It was reported that the firm had sought £20m in new shares to help finance store improvements and that it was looking to refinance its £40m banking facility.
Its net debt with banks stood at £36m on Monday.
The latest statement suggests there was an encouraging response to its funding call, but the expressions of interest did not go far enough to satisfy its equity requirements.
The company, through its advisors KPMG, is now inviting fresh offers of investment, which it admits would be most likely to involve a sale or sale of a Blacks Leisure brand.
It has 306 Blacks and Millets stores which together employ 3,500 staff.
Asked about potential job losses, a source close to the company told Sky News: “We are hopeful that a successful sale can be achieved, therefore protecting the 3,500 people who work in the business.”
The group says it remains in constructive discussions with its bank, Bank of Scotland, which is apparently supportive of the sale process.
Blacks hopes to conclude a deal during January after the crucial Christmas shopping period.
Mike Ashley’s Sports Direct (Frankfurt: A0MK5S – news) , which owns 21% of the firm, had offered a joint venture to allow Blacks to share its supply chain and warehouses in exchange for a fee.
It is unclear whether such an offer would remain on the table now a sale process has been initiated but it is understood Blacks wants to concentrate purely on resolving its immediate future rather than reforming its cost base.

http://tourism9.com/