Blacks to go into administration

Blacks

Black is set to announce a take over deal in the next few days, but it will go in to administration briefly.

 

The arrangement will get rid of the existing share value, which are no longer trading on the London Stoke Exchange,

 

The outdoor retailer is said to have received a number of final offers for much of the business.

 

The company which is made up of 98 Blacks, 208 Millets stores and the outdoor brands Peter Storm and Eurohike, employs around 3,500 people at present.

 

Administrators are expected to be appointed by KPMG, however this will only happen once an immediate sale is confirmed.

 

The ‘pre-pack’ administration will allow Blacks to wipe its £36m debts, and close down the loss making sections of the organisation.  This type of administration is when the organisation already has a buyer of profitable assets.

 

Job losses are expected at the head office and warehouse in Northampton.

 

Lat month saw Black appealing for an investors to rescue the failing retailer.

 

Sports Direct are though to be in the final four bidders, they already own 22 per cent of the company.

 

Other bidders are rumoured to be Peter Jones, the Dragon’s Den entrepreneur, and another sportswear chain, JD Sports.

 

Blacks have warned that following a 16m loss in the first quarter, annual results will be worse than predicted.

 

The company has seen shares drop dramatically by 97 per cent over the last year.

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