Blacks presses ahead with expansion
09 March 2010 09:36
Outdoor group Blacks has said that it will continue with its store expansion plans, despite a potential takeover bid from Sports Direct. Blacks said that two new outlets had already been opened and another three were in the pipeline as it continues with its turnaround strategy, in defiance of Sports Direct's moves to block funding for the plan.
Last month Sports Direct snapped up 28.5% of Blacks and vowed to stop its rival raising money from shareholders for the enlargement. It has since confirmed it is considering a bid for the firm.
However, today Blacks said the store roll-out was being funded by cashflow within the business after strong trading over the Christmas period.It said in the absence of a takeover offer it would continue alternative plans to raise money and was in the process of negotiating further sites for both its Blacks and Millets brands.
The firm said terms have been agreed on five new Blacks stores in Glasgow, Chester, York, Cheltenham and Stratford-upon-Avon.Of these, the York and Chester branches have begun trading and Blacks said "early customer reaction has been very positive".
Chief executive Neil Gillis said: "We are now two years into the turnaround programme for Blacks Leisure. The restructuring of the company last year has put us into an ideal position to now expand the business and the commencement of the store rollout programme is a critical point in the next phase of this turnaround programme".
Blacks has suffered a difficult past couple of years, leading to a restructuring and the closure of 87 loss-making stores in the fourth quarter of 2009, after securing a rescue deal with its landlords.
It has since reported improved trading and wants to refurbish its core estate and reopen in areas where it had previously closed stores that it felt were subject to high rents and therefore loss-making despite strong sales.
Including the new additions, the company has around 320 Blacks, Millets and Freespirit stores. It employs around 5,500 staff in stores and at its head office and distribution centre in Northamptonshire.
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