Blacks Leisure calls off takeover talks

The retailer effectively put itself up for sale in October when it announced it had hired advisers to help it field offers from parties interested in some or all of the business.

They are thought to have included Lion Capital, the owner of AS Adventure Group, which is parent company to the Cotswold Outdoor chain.

Blacks said none of the proposals were "sufficiently compelling" and that it would now concentrate on the final stage of its turnaround plan.

The news sent the company's shares 13 per cent lower, wiping 4.2m from its market value.

Blacks made a loss of 8.5m in the first half of its financial year but insisted it was capable of returning to profit on its own if the acquisition talks came to nothing.

The firm has endured a turbulent few years but now appears to be on a surer footing after a restructuring left it with a core estate of around 300 stores.

As part of its turnaround plans the retailer introduced a loyalty card and recruited a team of 19 outdoor experts to advise customers.

It has revamped 12 stores, which now account for 10 per cent of its sales, and plans to open another outlet next month.

December's Arctic weather was bad news for many retailers, but Blacks said it helped boost sales.