Mon, 05 Dec 2011 | BUSINESS SALE
Less than two weeks after warning of expected losses over the Christmas trading period, outdoor clothing retailer Blacks Leisure is now seeking a rescue deal.
The troubled retailer is thought to be in talks with a selection of firms that handle distressed debts.
Low sales in the autumn and a hefty debt pile mean that Blacks is now seeking fresh funding and are in need of £20 million of cash immediately. The profit warning announced on 25 November also led to a steep drop in shares to less than 2p.
Blacks also has the matter of its £40 million of loans due in February 2012 to Lloyds Banking Group to deal with, which it will need to refinance.
KPMG has been brought in to assist the retailer - which operates 300 outlets in the UK - with a rescue plan, though the options available are few. It has been predicted that Lloyds will be unwilling to pump more cash into a business that has been struggling to stay afloat for years.
Another issue is that its largest shareholder, Mike Ashley, will not support its fundraising plans. A CVA is another unlikely option as it went through the procedure two years ago.
A rescue deal with a distressed business specialist may be its only option - however, in such a scenario Lloyds would battle to recover its loans.
In a prime location, this freehold business opportunity includes a detached, well-equipped bakery factory along with a retail outlet and cafe, all part of a family business with a century of trading history.
Established in key industries like power generation and rail, this company offers specialised electrical and engineering services across the UK and Ireland, boasting strong relationships with blue-chip clients and a reliable income stream.
This well-established company has a decade-long track record in a growing market and is fully relocatable or can be operated remotely, providing flexibility for the new owner.
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