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More than 500 jobs are to be axed at Blacks Leisure as its closes 89 loss-making High Street shops in a desperate bid for survival.
The firm which has 256 Millets and 116 Blacks Outdoor stores also said that it is cutting a fifth of its head office staff in Northampton with the likely loss of 50 jobs.
These moves follow last week's decision to put Sandcity, the loss-making arm which onwed 11 O'Neill boardwear shops, into administration with the loss of almost another 100 jobs. The three steps are part of Blacks' attempt to reach a company voluntary arrangement with its main bank Lloyds to prevent it going bust.
Blacks had agreed a new £40 million funding facility with Lloyds in July but more recently decided that the downturn in trading conditions left it in danger of breaching its new banking covenants today.
It said today that “the vast majority” of the 89 stores which will close had “been a considerable drag on the core outdoor business”.
But Blacks also warned: “Further restructuring is still required.”
More announcements are expected soon.
