Blacks boss to step down
14 February 2011 10:03
Neil Gillis, the chief executive of Blacks Leisure who was hired to turnaround the company, is to step down in six months' time.
The retailer has seen its share price decline by around 80% in three years since Mr Gillis joined but City analysts believe that the company would not have survived at all without the restructuring strategy that he spearheaded. Blacks closed 112 loss-making stores during the period and agreed a £20 million fundraising.
Blacks Leisure recently reported that its search for a buyer had failed as bidders failed to offer the bid demanded by the retailer's board.
However, Mr Gillis' departure has not shocked analysts as he is famed for his three-year periods of tenure. Prior to Blacks, he helped restore health club chain Esporta, having done the same as managing director of Greene King three years prior to that.
Mr Gillis said: "I am proud of what we have achieved with Blacks Leisure over the last three years. We took some difficult decisions to protect and strengthen the business during a very turbulent economic period and an intensely competitive environment in outdoor retail. The exit from the loss-making Sandcity business, the reduction in central overheads of £9 million, the successful implementation of the CVAs and the success of the new store rollout programme were the key steps to position the business for recovery. I have always seen my role with the company as a three year period of intense activity and I believe that it is right for another individual to lead the business in the final phase of the turnaround programme."
David Bernstein, chairman, commented: "Neil has steered the business skilfully through some difficult times and we are grateful for his work over the last three years. Neil will be staying with the business over the next six months to ensure a smooth and effective transition as we complete the final phase of the turnaround plan."
Mr Gillis will renegotiate the group's banking facilities in his last six months and continue to open its new larger format stores, with ten planned for the new financial year.
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