UK retailer Blacks Leisure H1 losses widen - AFX


LONDON, Oct 31 (Reuters) - Blacks Leisure Group, the British outdoor clothing and footwear retailer, on Friday said half year losses widened by 55 percent but the group's turnaround plan was making good progress.

The company, which has 428 stores selling camping equipment and outdoor clothing, reported a pretax loss for the six months to end-August of 6.7 million pounds on sales 9.4 percent lower at 133 million pounds.

Blacks, in the first year of a turnaround plan under new Chief Executive Neil Gillis, said its outdoor business -- 260 Millets stores and 110 Blacks Outdoor stores -- performed broadly in line with expectations in the first half, recording a 5.2 percent fall in like-for-like sales.

However, it said its boardwear business -- 57 Freespirit, Mambo, Animal and O'Neill stores -- endured a 'very difficult' market with like-for-like sales slumping 16.1 percent.

Blacks said group like-for-like sales were down 7.7 percent in the first-half but that its trading performance over Christmas would be key to shaping the group's annual results.

'The outlook for the remainder of the year will be influenced by trading over the important Christmas period and possibly, wider economic factors,' Chairman David Bernstein said in a statement.

The retailer, which has issued three profit warnings already this year, said the initial phase of its turnaround plan was going well and that it had reduced costs by 5.6 million pounds and had made improvements in working capital, with stock at the half year being 10.5 percent below the prior year.

Staff will lose their jobs but its inevitable but still sad.

Trading less than 1 new penny.

1.25

+0.50 (+66.67%) wow

Incredible.

Blacks Leisure Group Share Price


1.12 -0.12 (-11.11%)

Into administaration according to SKY news .

From the proverbial - Blacks Leisure to go into administration

Blacks Leisure has said it is to briefly enter administration as part of a takeover deal.

The so-called prepack arrangement will wipe out the value of existing shares, which have now been suspended from trading on the London Stock Exchange.

MORE than 3500 workers face an agonising wait after outdoor chain Blacks confirmed plans to go into administration.

Blacks, who have 98 stores and own 208 Millets outlets yesterday said they had failed to find a buyer after they were put up for sale.

After they go into administration next week, the bulk of the chain is expected to be bought by JD Sports.

The deal would see most of their £36million debts wiped out and their worst-performing stores closed.

JD Sports’ £20million cash offer is believed to have beaten rivals including Newcastle United owner Mike Ashley’s Sports Direct, Blacks’ largest shareholder.

Dragons’ Den tycoon Peter Jones was thought to be among the bidders, as were Scots outdoor chain Trespass and Mountain Warehouse.

Millets and Blacks leisure in administration? Now is the winter of our discount tent.

Gausie ur so camp

JD Sports Fashion Plc

Acquisition of trading assets and trade of Blacks Leisure Group Plc

JD Sports Fashion Plc ('JD' or 'the Group'), the leading retailer of sport and athletic inspired fashion apparel and footwear, announces that it has acquired the trading assets and trade of Blacks Leisure Group Plc and certain of its subsidiaries ('Blacks') from its Administrators for a total cash consideration of £20 million excluding fees, Retention of Title and other claims arising consequent upon the Administration process. The assets acquired comprise principally inventories, fixtures and fittings and intellectual property and the consideration is being funded from cash resources and existing bank facilities.

Blacks is a long established retailer of specialist outdoor footwear, apparel and equipment and has two fascias (Blacks and Milletts) and was trading from around 290 stores at the point of its administration. In addition to selling third party brands such as North Face and Berghaus, Blacks has two strong own brands in Eurohike and Peter Storm. We will evaluate the performance of each store in the coming months in order to reach a conclusion about the number of stores which will be retained long term.

Blacks audited accounts for the period ended 26 February 2011 showed an operating loss of £2.5 million.

We will be retaining a senior management team at Blacks led by the Chief Executive, Julia Reynolds. Following the elimination of any underperforming stores and other cost reduction initiatives we believe the business can be run successfully as independent fascias within the Group.

Given that the acquisition has been completed in the quietest trading point of the year and with low current stock levels, we anticipate that the acquisition of Blacks will lead to a minor reduction in earnings in the remainder of the year to 28 January 2012. Thereafter, the earnings impact of Blacks will depend on how quickly we can deal with the store portfolio, rejuvenate the offer and realise the necessary cost reductions and synergies. We anticipate that Blacks will not make a material difference to the Group's overall performance in the year to January 2013.

Peter Cowgill, Executive Chairman of JD Sports Fashion Plc, said:

''We are delighted to add another leading multi-branded retail proposition to our portfolio of retail businesses. We believe with the support of JD's operational disciplines and financial strength, along with the existing Blacks management team, we can restore the Blacks business to a profitable market leading position.''

JD Sports Fashion Plc will be announcing its trading statement covering the Christmas period on Thursday 12 January 2012.

Appointment of Administrators.