Blacks wins bank aid as sales suffer

Outdoor retailer Blacks Leisure has turned to Bank of Scotland for extra support after a slide in sales caused its debt to surge.

The firm - which traces its roots to Greenock, where Thomas Black launched a sail-making business in 1861 - has negotiated a new 40 million banking facility, effectively giving it an extra 2m until 15 December.

The move follows a "significant increase" in its debt after a worse-than-expected 9.7 per cent drop in like-for-like sales in the 19 weeks to 9 July.

Chief executive Neil Gillis said: "It is encouraging that the bank has been prepared to support the business and believes that our turnaround plans are working."

Sales at the Northampton-based firm, which runs some 300 Blacks and Millets stores, had been hit by the warm weather in the spring but increased by 3.2 per cent in the past six weeks as June and July brought more rain, "which has done the business a lot of good".

Gillis, who will be replaced by Julia Reynolds next month, claimed the underlying state of trading was "pretty good", but added: "Everyone always uses the weather as an excuse but most of our products - tents, jackets and walking boots - are about protection from the weather."

Following a rescue deal with landlords in 2009, the group closed 88 loss-making stores, which helped cut losses to 5.3m from 43.6m in the year to 26 February.

Gillis said: "I'm quite pleased that we have been successful in keeping the business afloat and keeping 3,500 jobs."