Partner Article

Sports Direct confirms Blacks interest

The sports goods empire controlled by Newcastle United owner Mike Ashley has confirmed it is considering a bid to buy struggling outdoor retailer Blacks Leisure.

Speculation that Sports Direct was lining up a bid for Blacks has circulated around the City since last month when parent company Sports Direct International purchased a 28.5% shareholding in the group.

Today’s announcement follows last week’s attempts by Sports Direct used it to block an attempt by Blacks to raise £20m in extra funds.

Blacks had planned to use the fresh capital to fund the opening of up to 35 new stores and the refurbishment of a number of existing sites.

Sports Direct said it would now look to secure an alternative fundraising to support its recovery efforts, which would only require 50% shareholder approval.

In a statement Blacks said it “intends to pursue an alternative fundraising… in the absence of any concrete takeover proposals from Sports Direct that the board feels that it can recommend.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .