Clothing firm Blacks admits 'radical change' needed after £9 million loss

Published on Thursday 29 May 2008 10:31

OUTDOOR clothing firm Blacks Leisure has admitted that "radical change" is needed if it is to get back on track.

The company, which also runs the Millets, O'Neill and Mambo brands, has seen its pre-tax profits before exceptional items increase from 100,000 in 2007 to 300,000 in the year to March 1.

But it still posted an overall loss of 9.3 million, slightly better than last year's 13.8m loss.

Like-for-like sales reduced by 0.4 per cent in the period.

Chairman David Bernstein said: "The management team is focused on restoring competitive advantage in order to build on the improved operational disciplines of the current year.

"Further radical change is required to deliver a return to the previous levels of performance. I am pleased with the momentum and actions of the past six months and see these as a first step to delivering required changes."

The company said that its Blacks and Millets outdoor division achieved a near three-fold rise in operating profits, but this was offset by a poor year in boardwear, which trades through the Freespirit and O'Neill brands.

It has already been attempting to cut back on costs and has reduced its Northampton head office costs. It has also introduced more flexible working patterns to ensure in-store service levels can be boosted.

It is also attempting to improve efficiency by recruiting managers with backgrounds in businesses such as Marks & Spencer.