LONDON (ShareCast) - Outdoor clothing retailer Blacks Leisure has finalised the terms of a restructuring plan with the support of Lloyds Banking Group (LSE: LLOY.L - news)
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It is proposing company voluntary arrangements for Blacks and its wholly owned subsidiary, The Outdoor Group.
The group, which last week reported a surge in first half pre-tax losses to £18.1m from £6.7m a year earlier, said the plan will protect it from claims by about 101 landlords of stores which are either closed or in the process of closing, and compromise the claims of around nine landlords.
"The restructuring plan announced today and the new banking facility supporting it provide a realistic opportunity to ensure the survival of the core outdoor business which has the potential to become a strong successful retailer," said chief executive Neil Gillis.
Blacks said the landlords whose claims are being compromised will be able to make a claim against a total aggregate fund of £7.25m.
Lloyds unit, Bank of Scotland, has agreed to extend existing standstill agreement announced in September to the 23 December, and agreed new bank facilities for initial committed facilities of £42.5m.
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