Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Blacks moves forward with fundraising after a difficult year

Blacks Leisure is pressing ahead with a £20m fundraising as sales start to improve for the outdoor retailer after a year of major restructuring across the business.

The money raised will be used to fund growth for Blacks including the opening of 35 new stores and refurbishment of some of its current portfolio.

Blacks had initially proposed a fundraising in February but this was stopped after Mike Ashley bought back his 29% stake in the business to block the attempt and then made an unsuccessful bid for the company through his Sports Direct chain.

In its full year results announced today Blacks said that total group losses before tax was £46.9m, including impairment charges and a £19m charge for the Company Voluntary Arrangement (CVA) it completed to exit 88 stores last year.

Its remaining portfolio recorded a £7.9m loss, in line with market expectations.

Sales for the year to February 27 were ahead 5.4% on a like-for-like basis and sales growth from its ongoing estate in the second half grew 9.5%.

Total group sales for the year decreased 7% to £249m, reflecting the smaller size of the business.

Blacks chairman David Bernstein said: “The group has made progress in what has been a difficult but ultimately productive year. As a result of the CVAs, the group is ready to accelerate the final phase of the turnaround plan, with the net proceeds from the fundraising announced today being principally to invest in the current estate and open new stores in towns and cities where we are not currently represented.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.