Deal done to save leisure firm and 4,300 jobs

Published on Monday 23 November 2009 21:20

THE future of Blacks Leisure and more than 4,000 retail jobs were secured yesterday after landlords gave their "overwhelming" support to a rescue deal.

Creditors voted in favour of a company voluntary arrangement (CVA) to a restructure of the outdoor chain aimed at ensuring its survival, with more than 97 per cent giving their support.

Blacks, which said the move would safeguard 4,300 jobs, asked landlords of 89 closed or closing retail stores to accept lower financial claims on the firm.

The Northampton-based retailer, which began life in Greenock in 1861 as a sail-making business, has put aside a pot of 7.25million to compensate just over 100 landlords of retail stores and other sites, equivalent to about six months' rent each, in return for cancelling its long-term lease obligations.

Meanwhile, reports yesterday claimed Borders UK, the bookseller, could be placed into administration as early as today.

The 45-store chain was in talks with WH Smith, but these failed to lead to a sale and are understood to have been called off last week.

While the group has received some interest from other retailers, it is thought this has been to buy individual stores, not the entire business.

Both Borders UK and BDO Stoy Hayward declined to comment on reports the accountancy firm has been lined up to act as administrators.