Landlords to help rescue Blacks
23 November 2009 09:32
Struggling sportswear retailer Blacks Leisure is poised to reach an agreement with landlords that will allow it to back out of leases on 101 loss-making stores. The CVA could stop the retailer's slide towards administration and save 290 stores and up to 4,000 jobs. CVAs have already come to the rescue to JJB Sports, Discover Leisure and Focus DIY, helping the companies steer clear of administration.
If landlords agree, Blacks will only have to pay a maximum of six months rent on its stores but will remain liable for rates until the properties are re-let or the leases expire – a total of about £7.25 million.
Blacks has already agreed new banking facilities of £42.5 million as part of the plan, which is expected to pass the 75% threshold of support needed from creditors.
After the proposed restructure, Blacks will have a total of 314 stores and one distribution centre; 91 Blacks Leisure stores, 208 Millets outlets and 15 Freespirit shops.
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