Blacks Leisure on Brink of Sale as Four Buyers Table Bids

Strategic Insights -

Blacks Leisure, a struggling outdoor clothing retailer, is on the verge of being sold to one of four potential buyers, including Sports Direct, within the next two days. The company, which owns 98 Blacks outlets and 208 Millets stores, is expected to be sold under a pre-pack administration deal after failing to secure extra funding to turn around its loss-making business. The sale could save around 3,500 jobs, but would also see most of the company's £36m debt wiped out and its worst-performing stores closed.

Key Takeaways:

  • Four potential buyers, including Sports Direct, are expected to table final bids for Blacks Leisure within the next two days.
  • The sale is expected to occur under a pre-pack administration deal, which would see the company's debt of £36m wiped out and its worst-performing stores closed.
  • The sale could save around 3,500 jobs, but would also lead to the closure of some of the company's stores.
  • Blacks Leisure owns 98 outlets and 208 stores, including four in Northern Ireland.
  • The company employs 3,600 staff in outlets and at its head office and distribution centre in Northamptonshire.
  • KPMG is running the sale of Blacks Leisure and is expected to oversee the administration.
  • The sale is a result of the company's failure to secure extra funding to turn around its loss-making business.
  • A pre-pack administration deal is a procedure that sees a firm being sold immediately after it enters administration, without giving creditors the opportunity to vote against the proposed asset sale.

Statistics:

  • Blacks Leisure owns 98 Blacks outlets and 208 Millets stores, including four in Northern Ireland.
  • The company employs 3,600 staff in outlets and at its head office and distribution centre in Northamptonshire.
  • Blacks Leisure has a debt of around £36m, which would be wiped out in a pre-pack administration deal.
  • The sale of Blacks Leisure is expected to occur within the next two days.
  • KPMG is running the sale of Blacks Leisure and is expected to oversee the administration.

Sources:

  • BBC News (no date) "Four bidders in running to buy Blacks Leisure"
  • The Telegraph (no date) "Blacks Leisure on brink of sale as four bidders eye £36m debt"