Blacks operates 208 Millets stores throughout Britain

Struggling outdoor retail group Blacks Leisure suffered a setback today in its quest for a buyer when a key suitor said it would not make an offer for the company.

Mike Ashley’s Sports Direct International announced it was pulling out of the bid process for Blacks, which is struggling under the weight of a £36m debt mountain.

Shares in Blacks Leisure dipped to a new low of 1.6p on the news, down from yesterday’s closing price of 2.25p. Shareholders, of which Sports Direct is the biggest with a 22.5 per cent holding, have seen the value drop more than 94 per cent from their January high of £42.25.

A statement from Sports International said: “On 13 December, Blacks Leisure announced that it had received an expression of interest from Sports Direct International, among a number of others, which may or may not lead to an offer being made for Blacks Leisure.

“On 13 December, Sports Direct announced that there could be no certainty that it would make an offer for Blacks Leisure, nor as to the terms on which any such offer might be made.

“Further to these announcements and after careful consideration, notwithstanding that Sports Direct remains a committed and supportive shareholder of Blacks Leisure, Sports Direct has decided not to proceed with an offer for Blacks Leisure.”

A terse statement from the Blacks board said: “Blacks Leisure Group notes the recent announcement made by Sports Direct International confirming that Sports Direct does not intend to make an offer for the company.

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

Blacks operates 98 Blacks shops and 208 Millets stores and owns the Peter Storm and Eurohike brands. It said it hoped to complete a sale of some or all of its brands by January next year.