Blacks to close 89 camping stores

Published on Wednesday 30 September 2009 22:35

OUTDOOR clothing firm Blacks Leisure yesterday became the latest household name hit by the recession with an announcement that it will close 89 of its loss-making stores across the UK.

The company, set up in 1861 by Thomas Black in Greenock as a sail-making business, grew to become a leading outdoor equipment retailer.

Its customers ranged from the armed services and politicians – it provided sleeping bags for Sir Winston Churchill's historic meeting with President Roosevelt on board ship at the Atlantic Conference in 1941 – to Scouts and ordinary campers.

Yesterday, Blacks described the stores earmarked for closure a "considerable drag" on the outdoor division, which has traded profitably over the last two years.

A statement added: "The vast majority of the stores to be closed have not traded profitably for many years."

However, insiders say the company had long-standing financial problems exacerbated by moving away from its core market. It attempted to accommodate new credit crunch trends such as "glamping" and "staycations" – involving softer, more comfortable forms of camping including accessories such as inflatable sofas and armchairs, barbecues and even camping hair straighteners.

The company has also experienced strong competition from stores such as Go Outdoor and Yeomans.

The firm, which operates Millets, Blacks and O'Neill shops, also said it plans to lay off 50 staff at its Northampton head office.

There are 116 Blacks stores and 256 Millets branches in the UK with a total of around 5,000 staff. Scotland has 11 Blacks stores, 14 Millets and two Freespirit stores.

The company did not disclose how many jobs will be affected by the closure plan, which is subject to employee consultation.

Blacks agreed a 40 million lending facility with Lloyds Banking Group in July but "recent, unexpected difficult trading" has meant it is likely to breach its lending terms at the end of September. It has until the end of this month to submit an acceptable turnaround plan to the bank.

As part of the restructuring, Blacks last week called in administrators to its 11 O'Neill boardwear stores, putting 90 jobs at risk. Management said there was "no reasonable prospect" of restoring loss-making Sandcity – the subsidiary which owns the stores – to profit. It also said a drop in sales during the downturn meant it would breach the terms of its bank loans.

Blacks described the closures and job losses as "highly regrettable", but added that "both actions will ultimately strengthen the business and help ensure that a successful and profitable outdoor retailer emerges from the current restructuring process".

The group made a loss of 6.8m in the year to 28 February.

Clive Garrett, editor of Camping Magazine, said: "It's a great shame to hear about brands of that stature failing. A lot of us have been brought up with the Blacks range and used their Icelandic tents and sleeping bags when we were in the Scouts.

"While the recession has led to an increase in people taking more camping holidays, it is debatable if they are as yet buying equipment. First-timers would probably buy a cheaper tent from somewhere like Argos or Tesco. Experienced people might not want to spend money on replacements in this economic climate."