Blacks Leisure fuelled speculation today that it would go into administration in a move which would allow rivals to cherry-pick its best assets.

The outdoor clothing group, which owns 98 Blacks outlets and 208 Millets stores, signalled a so-called pre-pack deal was on the cards as it said it did not expect an offer for the group’s shares, only for its trade, assets and brands.

Blacks, which also owns brands Peter Storm and Eurohike, said discussions continue with interested buyers, understood to include Scottish clothing group Edinburgh Woollen Mill and Mountain Warehouse, with a view to securing the future of the business by next month.

The loss-making group, which employs 3,600 staff in outlets and at its head office and distribution centre in Northamptonshire, put itself up for sale after failing to secure extra funding to turn around the business.