Retailer JD Sports Fashion is reportedly in the box-seat to scoop up the juicy bits of Millets stores owner Blacks Leisure after the outdoor goods group goes into administration.
A source familiar with the situation has informed news agency Reuters that the sports fashion-wear seller has out-bid Sports Direct, Britain's biggest sporting goods retailer, and also topped bids from entrepreneur and Dragons' Den TV star Peter Jones and a fourth unnamed suitor.
Shares in Blacks Leisure, the outdoor clothing and equipment firm, were suspended on Friday as the company enters an administration process.
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A series of weak trading results last year sealed the company's fate and, despite looking for a buyer, the board has been unable to find anyone who wanted to mount a formal takeover. That might be because all of the interested parties found it more convenient to take over the company after it had performed a so-called pre-packaged administration.
The controversial procedure allows any buyer to cherry pick the best bits of the insolvent company while wiping out the company's bets.
In the case of Blacks Leisure, the group has 208 shops operating under the Millets brand and 98 trading as Blacks. Many of those shops might be assimilated into JD Sport's portfolio of stores if, indeed, the company is successful in its bid for Blacks Leisure, but the unprofitable ones will almost certainly be ditched, as might those too close to existing JD Sports stores, while jobs at Blacks Leisure's head office and warehouse in Northampton are also under threat.
Shares in JD closed up 11.4% at 751.75p today, at the top of the pile on the FTSE 350. Sport Direct shares rose 2.2% to 230p.
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