Blacks' shares plummet
Shares in Northampton-based leisure company Blacks have fallen a further 19.7 per cent. The company's value took a dive after it revealed it was turning to a £40m banking facility to manage its escalating debt.
The company said it had agreed terms on a new banking facility worth up to £40m with the Bank of Scotland, as it revealed sales had fallen sharply in its latest interim management statement on Friday 15 July.
Shares in the company dipped by 38 per cent after its indebtedness was revealed, losing 6.25p to close at 10p on the Friday.
This morning (19 July), shares had taken a further tumble to 8.6 pence, a dip of 19.7 per cent.
In a statement released last week, Blacks said its debt levels had "increased significantly due to both normal seasonal factors and the challenging market conditions affecting the UK retail sector".
Group revenue in the 19 weeks to 9 July dropped to £54.6m, down from £61.3m a year earlier. The company admitted the drop was steeper than it had expected.
