Millets is one of Blacks Leisure's brands

Outdoor retailer Blacks Leisure has confirmed Sports Direct is interested in buying the company.

The struggling High Street chain, which operates under the Blacks and Millets brands, announced it was up for sale last week.

Its board announced this week that Sports Direct International, headed by controversial Newcastle United boss Mike Ashley, had expressed interest in buying the company. It also confirmed other potential buyers were interested.

Blacks issued a profit warning last month and said last Wednesday that it was looking for buyers for one or more of its brands as debts mounted to £36m.

It also warned its shares could become worthless. Sports Direct is already Blacks Leisure’s biggest shareholder and last week increased its holding from 21.3 per cent to 22.5 per cent.

In a statement, Blacks said: “The board notes the recent press speculation and confirms that it has received an expression of interest from Sports Direct International, amongst a number of others, which may or may not lead to an offer being made for the company.

“A further announcement will be made in due course, if appropriate.”

Blacks said earlier it expected any sale to be concluded during January.

Mike Ashley already has substantial holdings in the outdoor retail market, owning the Karrimor brand and a controlling stake in Field & Trek.

Mountain Warehouse and GO Outdoors have both been touted as potential suitors to the Blacks empire.