Black’s Leisure to go into Administration
The outdoor clothing company Blacks Leisure has made an announcement saying that it has had to enter administration for a brief period as part of an on-going takeover deal.
The shares in the company have been suspended on the London stock exchange whilst the deal goes through. Blacks have said that they have received a number of firm offers for the business and that they will make a public announcement within the next few days.
Their retail stores will stay open during the takeover period. The company owns 98 Blacks stores, 208 Millets stores as well as the Peter Storm and the Eurohike brands.
At present the company employs around 3,500 people.
The company is using pre-pack administration and is being used as a way to finalise assets before there is a takeover and it is thought that the accountancy firm KPMG will be handling the process.
The brief period of administration will allow the firm to wipe of around £36 million of debt and also allow it to close down any loss making parts of the business.
But it is expected that any takeover will see job losses at Black’s head office in Northampton.
The takeover comes after Black’s made a plea for investors help to save the company from it financial woes.