Newcastle owner Ashley eyes struggling clothing firm

Published on Wednesday 11 February 2009 09:07

AN outdoor clothing retailer has received takeover approaches from two secret suitors, with Newcastle United owner Mike Ashley and private equity firm Lion Capital thought to be in the frame.

Mr Ashley, who owns sportswear retailer Sports Direct, is believed to have approached Blacks Leisure – the company behind the Millets outdoor clothing brand.

However, sources close to the entrepreneur, who owns a 29.9 per cent stake in Blacks Leisure, refused to confirm his interest.

Lion Capital, which owns La Senza and Orangina, is also thought to have expressed an interest.

Blacks Leisure was forced to release a statement to the London Stock Exchange confirming that it had received "a number of approaches concerning a possible offer" for the company.

The firm's shares closed up 42 per cent to 38p, valuing the company at 16.2 million. Just over two years ago, the shares were changing hands at 596p.

Last year, the company reported a 4.5m loss on pre-tax profits after exceptional items for the first half of 2008. In January this year, it revealed that like-for-like sales had fallen by 3.9 per cent over the peak Christmas period, with boardwear fallling by 14.9 per cent.

Blacks, which is currently in the middle of a turnaround programme led by its chief executive Neil Gillis, has cut jobs and introduced new store formats to help improve its performance.