Dark days for Blacks as buyer sought
Troubled camping retailer Blacks Leisure has made a final bid for survival by putting itself up for sale. After major refinancing agreements and failed fundraising bids, the Northampton company said it was now inviting offers through its adviser, accountancy firm KPMG.
The company previously announced that it needed additional funding to carry out its strategic plans, and said the board was "considering other financing options, including strengthening its capital structure".
Blacks announced in October that it was on the hunt for investment, but shareholders, including Mike Ashley, owner of Mansfield-based Sports Direct, failed to put up the funding.
After meeting with several potential new investors and existing shareholders, directors said this morning (7 December) they did not think sufficient funds would be raised.
A statement read: "The directors not believe the group will be able to complete a fundraising which would provide for the equity requirements of the group on the basis of its current capital structure and indebtedness.
"As a result, the directors now wish to invite offers to support further investment in the group, which is most likely to involve a sale of the company or sale of one or more of the group's brands."
The company proposes to conduct the sale process through its adviser KPMG.
In July this year, Blacks revealed it was turning to a £40m banking facility to manage its escalating debt. At 5 December 2011, the company's net bank debt was about £36m.
Directors warned that given the current level of debt within the group, there can be "to assurance" that any sale would attribute value to the ordinary shares.
Blacks said it was currently in "constructive discussions" with its lender, Bank of Scotland.
The Financial Times reported that Mike Ashley – who holds a 21 per cent stake in the company – was considering forming a joint venture to help out the embattled retailer; however, nothing of this nature had materialised as the company put itself on the market..
Blacks Leisure said it was seeking to conclude the sale process in January.
Last month (November), the company said it expected a "weak" Christmas trading period, adding that results for the full financial year were likely to be "below expectations".
