Blacks Leisure’s stock price plunged early Friday after it confirmed that no investors have emerged in recent weeks to buy its shares, indicating the U.K.’s largest specialty outdoor retailer will be sold off in pieces.


The announcement means shareholders of the U.K.’s largest specialty outdoor retailer, which has been struggling to reorganize for three years, will likely be wiped out.

“A number of parties have submitted indicative offers to acquire the whole or substantially all of the trade, assets and brands of the Group,” the British retailer said in an announcement released Friday.  ”However, the Board notes that it does not have and does not now expect to receive an offer for the shares of Blacks Leisure. Accordingly the Takeover Panel has confirmed that the Company is now out of an offer period.”

The company said that it continues to hold discussions with a number of parties with a “view toward concluding the sale process in January, 2012 and that the Bank of Soctland plc is supporting the process.
Based on the level of indicative offers received, it is most unlikely that any value will be attributable to the ordinary shares.

Reuters reported that the announcement indicates the board of directors for Blacks Leisure is preparing a preparing for a “pre-pack deal,”  in which companies enter the U.K. version of bankruptcy to facilitate an immediate asset sale.


Blacks Leisure, which owns 208 Millets and 98 Blacks outdoor stores as well as the Freespirit board sports chain and several outdoor brands,  has been in turnaround mode since 2008.