Blacks Leisure, the camping and outdoor wear store group, which announced a profit warning ahead of the Christmas trading period, has announced that it is to go into administration with KPMG lined up as the administrators. The firms shares have been suspended having fallen 97% in the last 12 months. The company said that it is expecting to sell most of its assets in the next few days. As such any sale is being done through the administration process. It is a pre pack administration of sorts in that a buyer is ready to buy. Normally a full sale and administration are done at the same time in a pre pack.
The administration will allow the firm to write off its £36m debts, and help it to close down loss-making parts of the business.
Any buyer is expected to require the closure of, or job losses at, Blacks' head office and warehouse in Northampton
Blacks Leisure came close to going into administration in 2009 which saw it closing over 100 stores by using a company voluntary arrangement to restructure and rescue the business. Although no panacea, the CVA bought time for the company but ultimately management has failed to turn it around.
If you are a worried employee of Blacks then please read our pages on redundant employee. However, please do not call our office as we can only point you to our website.
If you are supplier to Blacks take a look at the advice we give for suppliers and how they should supply a company that is going into administration