Blacks to raise £22m from shareholders

OUTDOOR goods retailer Blacks Leisure plans to raise £22m in a share sale to speed up its turnaround plan, which includes opening and refurbishing stores.

The group, which struck a rescue deal with creditors in November that saw it close over 100 stores, said it was conducting a fully-underwritten placing and open offer of 40.74 million new shares at 54p each, a 4.4 per cent discount to Thursday's closing price.

That will raise 20.28m net of expenses.

"The proceeds will underpin a selective expansion of our outdoor retail estate by the addition of up to 35 new stores, in towns where we have previously traded successfully or which currently lack an outdoor retail offer, and accelerate the refurbishment of our core estate which has suffered from years of underinvestment," said chief executive Neil Gillis.

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The group will also cancel its seasonal peak working capital facility of 7.5m.

The share sale is underwritten by Singer Capital Markets Limited, which is acting as sole financial adviser, sponsor and broker to the company.