Blacks returns to Glasgow but Ashley holds back plans

OUTDOOR retailer Blacks Leisure is returning to Glasgow as part of a new store opening programme in defiance of a potential takeover strike by Mike Ashley's Sports Direct.

The company closed its two stores in Glasgow late last year as part of a programme to dispose of 87 loss-making outlets.

At the time it stressed that many of the branches were trading well but that high rents were making them unviable.

Blacks said a new store in Glasgow would open as part of five new stores being funded by cashflow after strong trading over the festive period.

The company wants to embark on a wider store opening programme but Sports Direct, which now owns 28.5 per cent of the company, has said it would not back the fundraising needed and may make an offer for the company, although it stressed there was no certainty of that.

Blacks yesterday reiterated that in the absence of a concrete takeover offer it would press ahead with alternative plans to raise money and was in the process of negotiating further sites for both its Blacks and Millets brands.

Chief executive Neil Gillis said: "The restructuring of the company last year has put us into an ideal position to now expand the business and the commencement of the store rollout programme is a critical point in the next phase of this turnaround programme."

In February, Sports Direct's intervention forced Blacks to adjourn a shareholder ballot on its 20 million fundraising, intended for use on up to 35 new stores.

Including the new additions, the company has some 320 Blacks, Millets and Freespirit stores across the UK with 5,500 staff.