Sports Direct to give Blacks a helping hand
FTSE 250 high street retailer Sport Direct has reportedly offered to share its warehousing, supply chain and IT capability with struggling peer Blacks Leisure, according to the Financial Times.
FTSE 250 high street retailer Sport Direct has reportedly offered to share its warehousing, supply chain and IT capability with struggling peer Blacks Leisure, according to the Financial Times.
The paper, citing people familiar with matter, says that Sport Direct (which owns a 21% stake in Blacks) has proposed a joint venture which would help the smaller retailer refinance near-£40m of debt by scaling back costs.
While Blacks would continue to run the front-end business, Sports Direct would manage the back-end operations, the FT said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
On 25 November, Blacks issued a profit warning after further weakening of trading conditions and this morning, the firm invited offers to support further investment in the group, after having failed to drum up sufficient financial support from shareholders and potential new investors. This is most likely to involve a sale of the company or sale of one or more of the group's brands, it said.
Shares plummeted after the announcement, dropping from yesterday's closing price of 3.75p to 1.6p in early trade. By 10:56, they were trading around 2p. The price is well under the 52-week high of 42.25p reached at the start of January.
"As at 5 December, the group's net bank debt was approximately £36m. Given the current level of debt within the group, there can be no assurance that any sale would attribute value to the ordinary shares of the group," the firm said.
BC
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Will Poland’s new president stifle its stock market’s winning streak?
Poland’s stock market has outperformed many of its European peers, but with a newly-elected populist President at odds with a Liberal government, what lies ahead?
-
Fund flows rose in April but did investors sell in May?
ISA season prompted the highest level of inflows into investment funds during April but the mood may have changed in May