JD Sports in advanced talks over Blacks deal
JD Sports has confirmed this morning that it is in "advanced discussions" over a deal to buy the assets of embattled outdoor clothing retailer Blacks Leisure. The company is expected to buy Northampton-based Blacks in a pre-pack deal which reports suggest could be worth about £20m.
The outdoor retailer operates 98 Blacks outlets and 208 Millets stores in the UK.
JD Sports said in a statement: "JD notes the recent press speculation in relation to a potential offer for the assets of Blacks Leisure Group and the recent announcement made by Blacks, and confirms that it is in advanced discussions with Blacks in relation to an offer for certain of its assets."
Blacks made a final bid for survival in December by putting itself up for sale following a series of refinancing agreements and failed fundraising bids. However, it later revealed that a full sale looked "unlikely" and implied it would turn to a pre-pack deal to save as many of its 3,600 jobs as possible.
Professional services firm KPMG is running the sale process and it is now proposed that partners Brian Green, Richard Fleming and David Costley-Wood will be appointed as administrators before the sale to JD Sports is completed.
KPMG said on Friday (6 January) that final bids have been received from interested parties, including offers to acquire substantially all of the trade, assets and brands of the group.
Sports Direct owner Mike Ashley and Dragons' Den star Peter Jones were also among the bidders understood to be eyeing up a rescue deal for the stricken company. Ashley is Blacks' majority shareholder, with a 22.5 per cent interest.
A pre-pack sale to Bury-based JD Sports will now mean that the majority of Blacks' £36m of debt wiped out once the sale is complete. In a statement, JD Sports added: "A further announcement will be made on conclusion of those discussions."
