Blacks' £20m fundraising stalled by Ashley

BLACKS Leisure, the outdoor clothing and equipment chain, has put its recovery measures on ice while it wrestles with an attempt by Britain's biggest sportswear retailer to scupper the plans.

The Millets owner yesterday adjourned a key shareholder ballot on the 20 million fundraising after Sports Direct bought almost 29 per cent of its shares earlier this week and vowed to vote down the proposals.

The meeting will now be put on hold indefinitely, as Blacks negotiates with the sportswear giant, which is controlled by Newcastle United owner Mike Ashley. Seven days' notice will be given for a new date after the discussions conclude.

Although Sports Direct has not given a reason publicly for wanting to torpedo the fundraising, market speculation has surrounded a possible bid for its high street peer.

Blacks, whose history stretches back to the 1860s, when Thomas Black set up a sail-making business in Greenock, struck a rescue deal with creditors in November that saw it close more than 100 stores.

It is looking to raise money to speed up its recovery, including refurbishing stores and opening up to 35 new ones.