Reports in the United Kingdom indicate that Blacks Leisure is in talks with distressed-debt firms to secure fresh funding. The Times reported that KPMG LLP has been appointed to come up with a
rescue plan. The company needs an immediate cash injection of 20 million
pounds ($31 million), the Sunday Times said, citing sources.
Blacks needs to refinance 40 million pounds of debt with Lloyds Banking Group Plc (LLOY) in February next year.
The Financial Times reported that Sports Direct has proposed a joint venture with struggling outdoor retailer Blacks Leisure. Sports Direct already has as 21 percent stake in Blacks Leisure. Sports Direct has proposed sharing its existing warehousing, supply chain and IT capability with Blacks, according to people familiar with the situation.
