Blacks' High Street empire includes the Millets brand. Photo: Jim Linwood

Troubled outdoors retailer Blacks Leisure managed to reduce its losses in the last year in what it called ‘a difficult trading environment’.

The announcement of the half-yearly results for the group, which trades under the Millets brand as well as Blacks, showed a loss of £7.1m in the 26 weeks to August this year, compared with £8.7m in the same period in 2009.

The figures came amid speculation that thrusting retail group GO Outdoors could be one of a number of bidders for Blacks.

Blacks’ margins were hit by the fact it was committed to contracts to buy gear before it closed 88 of its loss-making stores, leading to a high level of stock it needed to clear.

However, it said its 12 newly opened stores were responsible for about 10 per cent of its total sales, with online sales showing a bounce, up 74 per cent in the second half of the year.

Chief executive Neil Gillis said: “Adverse trading conditions over the spring and summer led to like-for-like sales in the Outdoor segment declining by six per cent.

“The business has put in place a number of initiatives to underpin and protect its position as the leading Outdoor retailer in the UK.  These initiatives include: the launch of a Blacks loyalty card which has already attracted 60,000 members; the recruitment of 19 specialist group advisers – outdoor athletes and enthusiasts who work at a local level with mountaineering, walking, running and explorer groups across the country; and the development of a new running category in 42 of our largest stores.”

Chairman David Bernstein said: “The company is in preliminary discussions with several parties regarding either a possible offer for the company or an offer to acquire certain of the company’s trading activities and related assets.

“These discussions are ongoing although there is no certainty that any formal offers will be forthcoming or as to the terms on which any such offer might be made.”

Sheffield-based GO Outdoors announced profits of £4.3m for last year, a tripling of its figures on turnover that grew 83 per cent. President of the board of the privately owned company Paul Caplan said he was looking forward to the next 12 months of growth and expansion.

The company employs 1,200 and has plans for expanding the group to 50 shops by 2012, and 100 by 2015.