Blacks hails recovery progress

The Northampton-based group, which has 308 stores, also announced it has secured banking facilities worth £35 million for the next 18 months.

Its restructuring efforts, which have included the closure of loss-making stores, helped cut losses to £5.3 million from £43.6 million in the year to February 26, but Blacks admitted that recent trading had been difficult.

With the current dry spell adding to pressure on the high street, Blacks said sales levels in the new financial year were below expectations.

Despite the warning, shares opened higher today as the Millets owner confirmed that its new boss will be Julia Reynolds, the highly regarded chief executive of online retailer Figleaves and a former Tesco executive.

Neil Gillis, who is stepping down as chief executive after three years in the role, said Blacks was now a more focused business with significantly reduced overheads and a better format for its new stores.

He added: “The business is now well placed to move from turnaround to recovery with a focus on outstanding retailing to restore it to a leadership position within outdoor retail.”

Mr Gillis has overseen the closure of 88 loss-making stores as part of a rescue deal with landlords in 2009, as well as the roll-out of new stores in locations better suited to the Blacks format.

He pointed out that the 13 new stores opened during the last financial year accounted for around 10% of the company’s turnover in the period.