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Blacks fights for bank rescue as losses soar
29.10.09
Tents-to-fleeces retailer Blacks Leisure piled on the misery today, unveiling losses which more than doubled in the first half of the year.
The outdoor goods retailer saw losses spiral to £18 million from £6.7 million last time, leaving it desperately hoping that bankers will agree to secure a lifeline.
It is in talks with Lloyds Banking Group after warning last month that it would breach lending arrangements due to poor trading. Lloyds asked for a turnaround scheme to be submitted by the end of the month.
Blacks said it has presented a plan to the bank and is working on overhauling the company structure. “Once the group completes its restructuring action we expect that current market expectations of losses from the ongoing estate, excluding the effects of the restructuring plan and the associated costs, can still be met,” said the statement.
“However, this outcome will be dependent upon Lloyds Banking Group waiving the covenant breach, the implementation of our restructuring plan and a normal trading level through the important Christmas period.”
Sales in the 26 weeks to the end of August fell £8 million to £125 million. No dividend is being paid.
