Blacks Leisure to go into administration
Blacks Leisure has announced that it will go into administration. The outdoor goods retailer, which is struggling with debts of Â£36 million, is then expected be sold in a pre-pack deal.
In a statement issued today, the group said: "The Board has now determined that any sale of the trade, assets and brands will be effected through an administration process."
The group confirmed it had received final offers from a number of parties to acquire substantially all of the trade, assets and brands of the group, although none attribute any value to the equity.
Blacks, which operates 208 Blacks and 98 Millets stores, is likely to appoint three partners from accountancy firm KMPG as administrators but only when details of the sale of the group's trade, assets and brands have been finalised.
Dragon’s Den star Peter Jones has been reported to have made a bid for the company. Other potential bidders include Sports Direct, Edinburgh Woollen Mill and Mountain Warehouse.
Blacks reported a £16 million loss for the first half of its financial year and last month warned that its annual results would be worse than expected.
The group said that Blacks and Millets stores would continue to trade as normal while the sale process is completed. The group employs 3,600 staff.
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