JD Sports is 57 per cent owned by Berghaus's parent company. Photo: Betty Longbottom CC-BY-SA-2.0

The JD Sports Group is emerging as the frontrunner to pick up the assets of failed outdoor retailer Blacks Leisure.

Dragons’ Den entrepreneur Peter Jones declared he’s out of the bidding for the 208 Millets stores and 98 Blacks shops in the crumbling Blacks empire.

He Tweeted simply evening: “To quell all rumours I’m not buying Blacks Leisure.”

If JD Sports Fashion does snap up Blacks’ assets after a pre-pack administration, it will be seen as a blow for Newcastle United owner Mike Ashley and his Sports Direct company, which will see its 28.5 per cent holding in Blacks wiped out.

The Blacks Leisure board has already said the company’s shares would be worthless once it went into administration, with debts of £36m.

Sports Direct has seen the value of its Blacks holding plummet from last year’s high of £1.01bn to £3.28m shortly before trading on the London Stock Exchange was suspended.

JD Sports’ acquisition of Blacks’ stores and brands would make commercial sense as the company is 57 per cent owned by the Pentland Group, whose brands include Berghaus and Brasher.

JD Sports, founded in Bury, Lancashire as John David Sports, has more than 500 stores in Britain.

There is no indication of potential staff reductions in Blacks Leisure’s demise, but a clearer picture may emerge once the buyer has been announced. The Northampton head office and warehouse is thought to be particularly vulnerable to job losses.