Blacks' stores, including the Millet chain, showed a drop in sales. Photo: Jim Linwood ![[CC-2.0]](/lib/img/layout/cc-attr.gif)
Struggling outdoor retailer Blacks has had to increase its borrowing facility to £40m after being hit by a drop in sales of more than £6m over the spring period.
Shares in the Blacks Leisure Group fell more than five per cent on Friday at the news.
Like-for-like sales for the 19 weeks from 27 February to 9 July were almost 10 per cent lower.
A statement by the company said: “Since the year end the group’s indebtedness has increased significantly due to both normal seasonal factors and the challenging market conditions affecting the UK retail sector as a whole.
“Therefore, the group has been working alongside its bankers, Bank of Scotland plc, to extend and increase its banking facilities.
“The group has agreed, subject only to completing documentation, an extension to the availability of its existing seasonal peak facility together with an additional short term facility such that the Group will have total bank facilities of up to £40 million until 15 December 2011 at which point the facilities will revert to the previously agreed core facility of £35 million supplemented, during certain periods, by the seasonal peak facility of £3 million.”
The company also confirmed plans for lingerie-firm boss Julia Reynolds to take over as chief executive from next month.
It said it would continue to rebrand or close its remaining boardwear shops, converting those that stay open into outdoors retail stores.
A takeover process for the Blacks group last year was abandoned after no suitable offers were received.
PeteStuart
17 July 2011There on their way out, was in Go-Outdoor yesterday was mad busy. Blacks/ Millets should concentrate on customer service rather than worry about ATV, IPC and doing 1-2-1 with sales staff every two mins.
Stef
17 July 2011Lingerie-firm boss Julia Reynolds, great idea, how will this work. Employ another member of staff who hasn't a ******* clue about the product they stock!!. In agreement with Pete.
Ben Stobbs
19 July 2011Perhaps they are onto something, combining the technological fabrics of mountain wear with the design of womens lingerie, could certainly brighten up an otherwise cloudy ascent of any peak.....and sort out that layering problem on warm wet days.....
I'll stick with the cotton boxers though.
Adam
20 July 2011The key to a successful business is listening to customers. Blacks is one of those companies that thinks it knows best when in fact they know sweet fa. People at the top need to listen...even if it's their own staff who are only tryin 2 show ideas. I'll be glad when they collapse and everyone can shop at "proper" outdoor stores.