Blacks Leisure, the outdoor specialist, is expected to postpone its general meeting today to continue negotiations with rival sportswear retailer Sports Direct which plans to block Blacks’ proposed fundraising.
On Monday a wholly owned subsidiary of Sports Direct, Sportsdirect.com Retail, bought a 29% stake in Blacks from the administrators of Icelandic bank Kaupthing and said it would vote against Black’s £20m fundraising plans, key to its future growth.
Blacks said today that it is discussing the issue with Sports Direct but there was “no guarantee that these discussions will reach a successful conclusion”.
Shareholder approval is being sought to postpone the meeting for an indefinite period so that Blacks can continue its discussions with Sports Direct.
Sports Direct told Blacks that the it intends to vote in favour of the motion to adjourn the general meting.