Deathwatch: Blacks pulling up the guy-ropes?
Blacks, that lot who specialise in outdoor stuff, look like they're on the ropes with the company doing a 'restructure'. This means that they've had to hire someone to supervise the process which could see 89 of its stores close.
KPMG UK head of restructuring Richard Fleming said: “The proposed CVA gives Blacks the opportunity to preserve 291 trading stores and around 4,300 jobs. The CVA proposal is asking landlords of unoccupied stores to come to a compromise on the company’s financial liability.”
This news comes on the back of Alan Sugar's pal, Claude Littner, jumping ship from the leisure group. The Guardian quoted him as saying that he was "banging his head against a brick wall" over the fact that the management were too soft to do the dirty business required to haul Blacks' sorry arse away from a "perilous" outcome.
Blacks Chief Executive Neil Gillis said:”After several years of losses Blacks embarked on a turnaround plan in early 2008. That plan successfully reduced the cost base of the business, reduced our working capital requirements.
"However, the severity of the current trading environment and the drag of the loss-making Boardwear business has required a more radical set of measures to complete the turnaround of this business."
Apparently, property sources have said they've been unimpressed by Blacks' handling of the situation. It all seems a bit of a sorry state of affairs really.
TOPICS: High Street News