Blacks Leisure extends bank facility
Outdoor goods retailer Blacks Leisure has announced that it is extending its bank facility to Â£40 million as it struggles against difficult market conditions.
Blacks said the extension would remain in place until 15 December 2011 at which point the facilities will revert to the previously agreed core facility of £35 million. The facility will also be supplemented by an additional “seasonal peak facility” of £3 million.
Commenting on the extension Blacks said: “Since the year end the Group's indebtedness has increased significantly due to both normal seasonal factors and the challenging market conditions affecting the UK retail sector as a whole.“
The group also reported that its like-for-like sales fell 9.7% in the 19 weeks to 9 July. Total group sales were £54.6 million compared to £61.3 million in the same period last year.
"Although sales for the period were below our expectations, we have maintained gross margins and controlled overheads” said Blacks.
It said the group's performance had seen an improving trend as the financial year progressed, and like-for-like sales for the six weeks since the end of May were 3.2% ahead of last year.
In May, Blacks announced that it had appointed Figleaves CEO Julia Reynolds as its new chief executive. Reynolds will join Blacks on 1 August.
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