Blacks widens store closure programme
30 September 2009 09:32
Blacks Leisure has announced further steps in its restructuring plan, including store closures and head office staff reductions, following the administration of its Sandcity division.
The company said that it had begun the process of closing 89 loss-making stores, whose performance had been a "considerable drag" on the core outdoor business. Blacks added that the vast majority of the stores to be closed had not traded profitably for many years, but did not elaborate on how many jobs would be lost as a result of the closures.
Additionally, Blacks added that it was cutting the total workforce at its head office in Northampton by 20%, representing approximately 50 jobs.
In a statement, the company said: "Whilst it is highly regrettable that the company is having to take these steps, both actions will ultimately strengthen the business and help ensure that a successful and profitable outdoor retailer emerges from the current restructuring process.
"However, further restructuring is still required to satisfy the condition to the standstill agreement, which the company continues to develop with its advisers, KPMG".
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