Blacks Leisure, the U.K. outdoor chain, announced plans to close 89 stores across the group that have not “traded profitably for years”. The firm, which operates Millets, Blacks and O'Neill shops, also said it plans to lay off 50 employees at its Northampton head office. Last week, it called in administrators to its 11 O'Neill boardwear stores – threatening 90 jobs. It also said a drop in sales during the downturn meant it would breach the terms of its bank loans.
It described the closures and job losses at the head office as “highly regrettable,” but added that “both actions will ultimately strengthen the business and help ensure that a successful and profitable outdoor retailer emerges from the current restructuring process”.
This news comes on the heels of recent news that Blacks had placed its Sandcity boardwear stores in administration after its bank gave it a month to come up with a restructuring plan for its loss-making stores. A review by Sandcity's directors concluded that the division wasn’t likely to return to profitability in the medium to long term.
The move meant Blacks has exited around one third of its total boardwear division that also includes the Freespirit chain.
