Blacks Leisure, the U.K.s largest outdoor specialty retailer, has been forced to renegotiate with lenders after a 10 percent slide in sales triggered loan covenants, possibly forcing the retailer to call on shareholders for more capital, according to a report by The Guardian newspaper.
Blacks Leisure CEO Neil Gillis said the retailer has enough cash to continue operating until at least February, according to the report.
Total sales at Blacks Leisure reached £54.6m in the 19 weeks ending July 9, down from £61.3m in the same period last year. Comp sales, excluding VAT, declined 9.7% but have been running 3.2% ahead of last year since the end of May.
