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Whelan saves JJB as Blacks deal founders
25 Mar 2009The High Street leisure sector was poised for a massive shake-up today as Blacks Leisure, which also trades as Millets, said a potential £16 million takeover bid had gone away.
Its shares tumbled 6p or 15% to 311/2p.
The news came as rival JJB Sports agreed the sale of its gym business to founder and former owner Dave Whelan for about £83 million. A standstill agreement with its lenders expired at midnight.
Blacks never revealed who the bidder was but one favourite was Sports World owner Mike Ashley, who owns 29% of the camping to leisurewear seller.
Ashley is also keenly interested in JJB, where he has a 21% stake. He had been widely seen as ready to pounce if the ailing sportswear chain failed to sell off its fitness clubs and renegotiate its debts.
Blacks last month warned it will make a loss on the closure of its Boardwear surfing chain which it is in the middle of shutting down.
Analysts forecast pre-tax losses of at least £8 million this financial year.
