Blacks makes new to effort raise funds

The group, which hopes to raise around 19.7m in its latest attempt, was forced to abandon earlier plans after Mike Ashley's sportswear firm threatened to veto them.

Blacks hopes it can now side-step opposition from Sports Direct, which holds a 27.15 per cent stake, after restructuring the vote in a way that only requires a simple majority of shareholders.

Chairman David Bernstein said: "The group has made progress in what has been a difficult, but ultimately productive year."

He said the group was now "ready to accelerate the final phase of the turnaround plan", with the proceeds from the fundraising used to invest in the current estate and to open 35 new stores in towns and cities where the firm is not currently represented.

The firm yesterday posted a pre-tax loss of 43.6m in the 12 months to February 27, compared to a 6.6m deficit the previous year, as exceptional costs soared after the firm was forced to fight for survival.

Last year saw a restructuring and the closure of 88 loss-making stores after Blacks secured a rescue deal with its landlords.

Blacks said it finished the year "strongly", with like-for-like sales up 5.4 per cent, while same stores sales growth from its ongoing estate was 9.5 per cent in the second half.