Blacks looking to tap City investors for £20m

Outdoor-equipment specialist Blacks Leisure asked City investors for more than £20million yesterday to help to fund a major overhaul and expansion.

Blacks, which operates its own-brand shops plus the Millets chain, is planning up to 35 new stores and the refurbishment of existing sites.

The move comes just months after the closure of 87 loss-making stores, including five in Glasgow and one each in Edinburgh, Inverness, Livingston and Oban.

Dozens of Scottish retail jobs and more than 4,000 nationwide were saved in November after landlords gave their overwhelming support to a rescue deal for the remainder of the business.

Blacks said its cash call was part of the crucial growth phase of its recovery. It hopes a placing and open offer of new shares will generate net proceeds of £20.3million.

Chief executive Neil Gillis said the company’s recovery plan meant it was now in a stronger position than for years.

His confidence has been fuelled by recent trading after like-for-like sales improved by 15.2% during the six weeks to January 7.

The company has 208 stores under the Millets brand and 92 Blacks shops.

It employs about 3,500 store staff and 450 people at its head office and distribution centre.

Its expansion plan includes reopening shops in areas where it has closed stores it felt were subject to high rents and, therefore, loss-making despite strong sales.

The fundraising will also pay for the refurbishment of its core estate, which Blacks said had suffered from years of underinvestment.