01 October 2009
Blacks to close 89 stores
Blacks is to close 89 loss-making stores and make 50 people redundant at its Northampton head office as part of a restructuring plan that it hopes will be acceptable to the company’s bank.
On September 22 the retail group, which comprises Blacks, Millets and O’Neil outlets, agreed a standstill agreement with Lloyds after revealing it was likely to breach a financial covenant at the end of September.
The standstill agreement was subject to Blacks delivering a restructuring plan that included an exit of the company’s loss-making stores. As a result, Sandcity, part of the group’s boardwear division, was placed into administration on September 23.
Blacks said that while it is highly regrettable that the company has 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.”
Blacks also stated that further restructuring is still required to satisfy the condition of the standstill agreement, which the company continues to develop with its adviser, KPMG.