Blacks Leisure expects to announce a sale of substantially all of its stores, assets and brands within the next few days. The UK company confirmed that some of the investors bidding on its assets have offered to acquire substantially all its assets, which include the Millet and Blacks outdoor specialty store chains.
The company also confirmed the bids were solicited in conjunction with the UK equivalent of a pre-packaged bankruptcy proceeding that will wipe out its stockholders.
On Monday, the UK's Daily Mirror reported that JD Sports Fashion confirmed it was close to reaching a deal to acquire the majority of Black Leisure's more than 300 Millet and Blacks outdoor specialty stores as part of a reorganization that would retain the bulk of Black Leisure employees.
“It is expected that the process to commence the appointment of administrators of the company and certain of its subsidiaries will begin shortly although the actual appointments are only likely to take effect just before the completion of any such sale,” the company said in its statement. “The operating subsidiaries of the Group will therefore continue to trade through all outlets outside of an administration pending any sale. It is proposed that Brian Green, Richard Fleming and David Costley-Wood, partners of KPMG LLP, will be appointed as the administrators.”
The Company's ordinary shares have been suspended from trading on the London Stock Exchange with immediate effect.
