Uncertain future for Blacks Leisure
23 September 2009 09:41
Blacks Leisure is facing an uncertain future as the continuing poor performance at its Boardwear division threatens to drag the entire group into administration.
In a statement, the company said that it had underperformed against budget for the first six months of the financial year to August 31st, resulting in the company being about to breach the terms of a £35 million loan from its bank.
After "constructive discussions" with its lenders, Blacks said that Lloyds Banking Group had agreed to a temporary suspension of the terms of the loan subject to Blacks providing a workable turnaround plan, which must include actions to exit the company's loss-making stores by October 30th.
Blacks said that it had appointed KPMG to work with it to evaluate the full range of options available. However, the group added: "if a waiver of the covenant breach is not ultimately given, the ongoing prospects of the group will be uncertain".
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