Company Voluntary Arrangement for Blacks Leisure
The specialist retailer of camping equipment and outdoor clothing, Blacks Leisure, is planning to present to its creditors a company voluntary arrangement (CVA) in an attempt to secure its survival.
Blacks operates 256 Millets stores, 116 Blacks Outdoor stores and more than 50 surfwear stores trading as O'Neill and Freespirit. Last week, Blacks began closing 89 of its loss-making stores with approximately 400 employees being made redundant.
After a two month standstill agreement with its bankers LloydsTSB, the company placed its O'Neill division into administration and now has until the end of November to convince its lenders that its restructuring plans are sufficient to warrant Blacks itself not being placed into administration. It admits that further restructuring is still required to meet the terms under the standstill agreement.
The planned CVA is to centre on the mainly board-wear stores being closed and will request landlords and creditors to vote on the proposal for some landlords to receive compensation payments in return for the termination of their leases.
A statement from Blacks last week said, "Whilst it is highly regrettable that the company is having to take these steps, [they] will ultimately strengthen the business and help ensure that a successful and profitable outdoor retailer emerges from the restructuring process."