Troubled outdoor chain Blacks Leisure today said it had finalised plans for a rescue deal to “ensure the survival” of its core business and preserve more than 4,000 jobs.

The proposal would involve asking landlords of 89 closed or closing retail stores to agree concessions on their financial claims on the firm.

Blacks said the planned company voluntary arrangement (CVA) still needs to be voted through by creditors, but the firm hopes the move would safeguard 291 stores and 4,300 jobs.

Blacks has agreed new banking facilities of £42.5m with its lender Lloyds Banking Group as part of the plan.

Chief executive Neil Gillis said: “The restructuring plan announced today and the new banking facility supporting it provide a realistic opportunity to ensure the survival of the core outdoor business which has the potential to become a strong successful retailer.”

Blacks made pre-tax losses of £18.1m in the 26 weeks to August 26, up from £6.7m previously, as its boardwear division and underperforming Blacks and Millets stores dragged the group down.

As part of the CVA, a pot of £7.25 million has been set aside to compensate just over 100 landlords of retail stores and other sites, equivalent to around six months rent each.

These payments would be made in two instalments next year.

In addition the proposals include new terms for Blacks’ remaining 291 stores to permit monthly payments for 18 months.

The new banking facilities will only be available once the CVA proposal is approved.
Lloyds, through its Bank of Scotland business, would take a 5% stake in Blacks following the deal, subject to shareholder approval.

Should this not be agreed by investors, Blacks will pay its bank a fee of £2m in cash.

The CVA would last 9 months if voted through by the requisite 75% of creditors at a meeting on November 23.