.Blacks Leisure, the struggling U.K. outdoor clothing retailer, sold its Mambo surf stores for £800,000 ($1.3 million) as part of its exit from the boardwear space. The sale comes amid reports of more suitors arriving to acquire the owner of Millets
Neil Gillis, the Blacks chief executive, who has been trying to turn
the company around, decided last year to explore the sale of the boardwear division,
which included stores operating under Freespirit and had been incurring heavy
losses. Surf accounts for less than 5% of its sales
Andrew Gerrie, the New Zealand-born chief executive of Lush, known for
its bath products, bought Mambo, an Australian surf and street wear brand in acquired in 2006, through his Hong Kong investment
vehicle.
The sale marks another step in the restructuring of Blacks, which also owns Millets outdoor equipment stores, after it announced a £20 million ($20 million) fundraising last month. It also closed dozens of lossmaking stores, including most of the surf-focused shops, some of which traded as ONeills, late last year. Landlords of the stores agreed to give up their leases in return for only six months payment, or £7.25 million ($7.25 million). The fundraising will help to repay a loan taken out to cover this payment.
The company has reportedly become a bid target for Halfords, which is said to be considering making an offer of up to £30 million. Other potential buyers reported in the British press include Mike Ashley, the billionaire owner of the Sports Direct chain, and Lion Capital, the private equity firm.
