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.
This unique and renowned freehold bar and restaurant in the heart of York City Centre offers over 250 covers across its spacious interior, pavement seating, and a rare rooftop terrace.
FREEHOLD
A well established and strongly profitable engineering business, located in the Midlands. The company will be an attractive acquisition for both a larger trade buyer and also those looking for a stable engineering business.
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