Losses mount up at Blacks
Troubled Northampton retailer Blacks said this morning (27 October) it is exploring turnaround and future funding options as it reported a pre-tax loss of £16m.
The outdoor retailer said losses totalled £16m for the six months to 27 August, climbing from £7.2m in 2010.
Like-for-like sales also declined 7.2 per cent, hitting £81.1m for the period compared with £86.8m in 2010.
Blacks said it had reduced its levels of stock by 27.6 per cent to £28.5m, and admitted it was evaluating future funding options.
Chief executive Julia Reynolds, who was appointed to the company on 1 August, said that the "potential for a turnaround is clear".
She said: "Since August, we have addressed some critical retail issues facing the group, most notably realigning the stock position and strengthening the management team in key functions, while simultaneously implementing a thorough root and branch review of the business.
"While the strategic planning process is nearing completion, it is already apparent that there are multiple opportunities to bring fresh retail ideas and disciplines to the business and more properly exploit its market leadership position, brand heritage and unparalleled brand recognition in the outdoor retail space.
"Notwithstanding the challenges of a difficult economic environment, the potential opportunity for a turnaround is clear."
In July this year, Blacks revealed it was turning to a £40m banking facility to manage its escalating debt.
