Following a November announcement that creditors had approved a rescue plan to keep it in business, UK-based Blacks Leisure Group cemented its resurgence by issuing a recent statement confirming the retailer is on track for its first quarter stock offering. Representatives for Blacks stated that a 13.1% improvement in like-for-like sales in the Outdoor Division had driven consolidated comps to 12% growth for the six month period ended Jan. 7. Likewise, the company said a very strong performance over the Christmas peak trading period drove comps to 15.2% growth for the six weeks ended Jan 7.
Blacks said strong comps had put it in position to issue $24 million to $32 million for the first quarter.
Sandcity Limited, Blacks’ Boardwear Division subsidiary that operates the O’Neil retail division, posted like-for-like sales that fell 4.4% for the six month period, prompting the Group to put it in administration – or the British equivalent of bankruptcy. Blacks also closed 87 of its loss-making stores in the fourth quarter of 2009. Notwithstanding the restructuring, Blacks said trading in ongoing stores during the six-month period was “very healthy,” citing sales that benefited from particularly cold weather in the backend of the period in review. Representatives added that the new Outdoor store formats and the positive impact of the CVAs and restructuring measure “have placed the Group on a much stronger footing and significantly enhanced recovery prospects.
Citing recent strength, Blacks confirmed that directors are currently considering their options in relation to a possible equity fundraising to be undertaken in the first quarter of 2010 to raise between £15m and £20m depending on investor demand.
