Blacks Leisure to reveal losses

Outdoor clothing specialist Blacks Leisure is this week expected to reveal an £8million loss as it pushes for banks to agree renewed borrowing terms.

After an inquiry by Financial Mail on Friday, Blacks issued a three-line statement to the London Stock Exchange saying it had agreed with Lloyds Banking Group to extend terms for three months.

The three-month standstill gives the firm breathing space to try to avoid the banks taking more stringent action. In the past four years the chain, which owns Millets, has issued a series of profits warnings, been forced to scrap plans to sell its boardwear division and has made little profit.

Blacks hopes to agree a 12-month facility, once it has proved that it can restructure surfwear chains Freespirit and O'Neill and return to profit. City analysts expect Blacks to make further losses in the financial year ending in February.

Hopes of a bid were dashed in March when reported interest failed to materialise from Ashley, private equity firm Lion Capital and activist shareholder Principle Capital, which owns 27 per cent.