Blacks Leisure Share Discussion Threads

[baldeagle5] 22/12/2011 18:14

Let's see tomorrow.

[simonhatter37] 22/12/2011 18:09

The only "twist" will be this dog going under and people lsing everything. Simples.

[baldeagle5] 22/12/2011 17:59

Simon - Re the Guardian piece - IF Lloyds do not pay the rent tomorrow then they are to all intents and purposes kissing goodbye to their loans as admin will follow and the co will be pre-packed whereas with expressions of interest from 'several' co's and really a cash-flow issue, the payment of the rent with the possibility of recouping the loan through trading and selected store sales in emminently more palatable to them.

I repeat again, there is a 'twist' in this story and not long to wait now...

[simonhatter37] 22/12/2011 17:52

This will go bust within weeks and shareholders will be left with nothing. Mark my words.

[baldeagle5] 22/12/2011 17:51

Here's a scenario that you and the press havent contemplated but I bet Griffith et al have - what if if Blacks sell some stores and/or brands to ensure sufficient cash flow to avoid administration? This actually seems the way things are going.
With the equity valued at sub £2m then it's not inconceivable to see these at 5,6,7p +.....
That is what I expect to happen tomorrow.

[typo56] 22/12/2011 17:27

strutt12 - If KPMG is expected to sell the company under a pre-pack administration so the winning bidder can pick it up free of liabilities, would that mean any value for the ordinary shareholder?

I wouldn't base much confidence on the basis of who has been buying - they probably have a lot deeper pockets than you do and it's simply a loose change punt to them. Look how the Bill Gates foundation bought into JJB, or how Sofima bought 4% of DTZ a couple of weeks before they died recently.

[strutt12] 22/12/2011 17:22

Blacks Leisure is likely to fall into administration on Friday unless it receives a takeover bid that would allow the company to keep trading.

The Blacks board will hold a crucial meeting with Lloyds Banking Group on Friday morning, where the company will learn whether it can pay its next quarterly rental bill. Should Lloyds refuse the payment, Blacks is likely to file for administration – putting 3,500 jobs at risk.

Sources close to Blacks, which was put up for sale two weeks ago, say that several companies have expressed interest in buying some of its 300 stores. But none of the bids on the table amount to the offer for "substantially all" of the company which Blacks is hoping for.

Blacks operates 306 outlets in Britain – 208 Millets stores and 98 under its own name. It is understood that Go Outdoors is interested in just buying Blacks' stock and its brand names. Mike Ashley, whose Sports Direct chain pulled out of takeover talks last week, is thought to be interested in buying some outlets. Edinburgh Woollen Mill and Mountain Warehouse are also understood to have submitted bids for some of the Blacks estate.

Even if one of the bids is accepted, it is likely that Blacks would enter a "pre-pack" administration, in which some of its debt and loss-making stores would be shed.

Friday is a "quarter day", when most high street retailers must hand over their rent payments for the next three months. Retail analysts fear that many weaker retailers may struggle to find the funds this time, having suffered from Britain's low consumer confidence.

[strutt12] 22/12/2011 17:11

Typo56

Still doesn't explain why the likes of Ashley, Griffiths, Frank Scolaro, Andy brough and now VF Corporation have been buying


The Scottish clothing group Edinburgh Woollen Mill has emerged as a frontrunner to acquire parts of ailing retailer Blacks Leisure.

Potential bidders had until Thursday to register interest with the sale adviser, KPMG, and reports suggest a flurry of bids have been tabled from companies including Mountain Warehouse and Go Outdoors.

There have been concerns over the future of the stricken firm, which owns 98 Blacks outlets and 208 Millets stores, after its biggest shareholder Sports Direct walked away from buy-out talks, sparking fears of a lack of interest.

But sources familiar with the process confirmed a number of bidders had come forward, including Edinburgh Woollen Mill, which recently snapped up 58 Jane Norman stores after the retailer fell into administration. Blacks Leisure declined to comment.

Shares in Blacks Leisure surged 22% as speculation over potential bidders escalated but the price is still down 96% since the start of the year, giving the company a market value of £1.4 million.

KPMG is expected to sell the company under a pre-pack administration so the winning bidder can pick it up free of liabilities.

Blacks, which also owns brands Peter Storm and Eurohike and is in £36 million of debt, put itself up for sale after failing to secure extra funding to turn around the business, which would have included a revamp of its stores.

The retailer made a £16 million loss in the first half of the year and recently warned that its full-year performance would be worse than expected. It was hit by the warm weather in October and November as much of its clothing is aimed at harsher conditions, such as fleeces and waterproof jackets.

Sports Direct, which is owned by Newcastle United owner Mike Ashley, had been seen as the most likely to step in to rescue the ailing retailer, having already tried to buy the company last year. But Sports Direct recently issued a statement confirming it had withdrawn an offer for the company. However, whether the company will make a move on Blacks if it falls into administration remains to be seen.

Edinburgh Woollen Mill, which was founded in 1946 and has 265 high street stores throughout the UK, has a record of turning around troubled companies. Before buying Jane Norman stores, it bought 77 stores from the administrators for textiles business Rosebys in November 2008. They were merged with the assets of furnishings business Ponden Mill to create the 150-strong Ponden Home chain.

[baldeagle5] 22/12/2011 17:11

Type - Answer - Griffth or Scolaris!

[typo56] 22/12/2011 16:18

Deja vu. Have a look at the DTZ thread.

If they are going into administration, who do you suppose any major holder could sell to anyway?

[baldeagle5] 22/12/2011 15:57

If this was going into admin then it would have been suspended today and the shares inundated with sellers and price at 0.2-0.2p.
Neither Griffiths not Scolaris nor Pentland have been selling stock.... there is a twist here and the equity is so low that a price of 5-6p cannot be ruled out.

[typo56] 22/12/2011 15:52

Some of the "buying" may just be shorters prefering to close positions now rather than face suspension. Once suspended it can take a long time to get settled at zero, during which time margin is tied up and charges accumulate. I'm currently in that position with DTZ.

[strutt12] 22/12/2011 12:25

Hyper al

I'd be a bit happier to see some big volume buying, the size of trades going through as buys, in my opinion are just punts!!!

I suppose the best we can ask for is that the interested parties get into a bidding war, but that seems doubtful. Alot depends on whether they feel they can turn the business around and if they have the capitol to do this.

[hyper al] 22/12/2011 09:08

strutt12

Thanks for posting that.

Must be some hope for share holders otherwise the shares would have been suspended.

I still think the shares will be trading after the reorganisation, purely as the big share holders will want that, how that will happen, I do not know, maybe the online aspect will be kept as Blacks.

Also investors are still buying shares.

[strutt12] 22/12/2011 08:57

The Scottish clothing group Edinburgh Woollen Mill is among the retailers that will today submit bids to acquire Blacks Leisure, the troubled outdoor specialist.

Mountain Warehouse, Go Outdoors and Cotswold Outdoor also plan to make first-round offers for Blacks Leisure, which has debts of £36m.

Edinburgh Woollen Mill, which has more than 500 stores, has a record of acquiring distressed retailers, and bought the young fashion chain Jane Norman out of administration inthe summer.

Blacks Leisure, which has 98 Blacks outlets and 208 Millets, will also almost certainly have to be rescued through a pre-packaged administration. Potential trade buyers plan to use this insolvency procedure to ditch unprofitable stores and slash Blacks' £26m central overhead costs, which comprise its staff, head office and warehouse in Northampton. Sports Direct, which owns 22.5 per cent of Blacks, is also still interested in parts of the group. All parties declined to comment.

[hyper al] 21/12/2011 10:44

still getting buyers.

[still waiting] 19/12/2011 17:02

the whole high street is a pack of cards waiting to collapse, many of the property owners are highly leveraged themselves so no room for rent reductions on the prime locations...

[strutt12] 19/12/2011 16:55

And the fact the directors have said, they don't see a viable business going forward!!! At least Blacks Directors have a plan to turn the business around, problem is they have no money to do this!!

Yet!!

[still waiting] 19/12/2011 16:28

the debt on HMV makes that the true dog share imho..

[clocktower] 19/12/2011 16:23

Time they suspended the share until they have sorted it all out one way or another imo.

[hyper al] 19/12/2011 16:21

not looking good

[sir rational] 19/12/2011 16:19

There is just no need for them both on the high street

[simonhatter37] 19/12/2011 16:19

HMV are just as bad as Blacks if not worse.

[strutt12] 19/12/2011 16:17

Simon,

Think you should be on the HMV board!!!