JD Sport win control of Blacks
January 07 2012
The UK’s outdoor industry breathed a collective sigh of relief this morning when it was announced that JD Sports had won control of the ailing outdoor gear chain Blacks.
JD Sports, described on their website as “the UK’s leading trainer and sports fashion retailer” will be named as the new owner on Monday having seen off bids from Mike Ashley’s Sports Direct, television personality cum entrepreneur Peter Jones and an unnamed bidder.
Blacks, which also own Millets, went up for sale last month when shareholders decided not to put any more cash into the business. The board then decided to go into pre-pack administration, a process that sees a business declared insolvent before emerging immediately under different ownership in a pre-arranged deal. Such a process allows the purchaser to cherry-pick the company's best assets but walk away from its unsecured debts.
While most of the 3500 staff will be expecting to retain their jobs there is much uncertainty about the future of the company’s distribution warehouse in Northampton.
Analysts suggest that a key player in the acquisition was JD's major shareholder, Pentland, an important supplier to Blacks through their Berghaus and Brasher brands.
