Blacks says Ashley bid is 'inadequate'

Mar 20 2010 by Iain Laing, The Journal

Blacks has suffered a difficult past couple of years, leading to a restructuring and the closure of 87 loss-making stores in the fourth quarter of 2009 after securing a rescue deal with its landlords.

It has since reported improved trading and wants to refurbish its core estate and reopen shops in areas where it has closed stores that it felt were subject to high rents and therefore loss-making despite strong sales.

The company has around 320 Blacks, Millets and Freespirit stores.

It employs around 5,500 staff in stores and at its head office and distribution centre in Northamptonshire.

Mr Ashley is majority shareholder of Sports World and also owns Newcastle United football club.

While disappointed by the response of Blacks, Sports World said it still held out hopes that the board will “recognise the merits of its offer”.

It described the indicative offer price as highly attractive for Blacks shareholders given the share price performance in the past 12 months and the certainty that its proposal offered.