Blacks in another slump and may tap investors

The size of the task facing Blacks Leisure's incoming chief executive was laid bare today, when the outdoor goods retailer reported another slump in sales.

It also warned it may need to raise yet more capital from beleaguered investors.

Sales in the 19 weeks to July 9 fell nearly 10% to
£54.6 million and there was no reported bounce from the Glastonbury music festival.

Julia Reynolds, formerly of Figleaves, takes over from Neil Gillis in August.

The idea is that Reynolds, a skilled retailer, will be able to take the business on from what Gillis, a turnaround man, has so far achieved.

That turnaround itself seems to have further to go, however. It struck a deal with creditors in 2009 that saw it close over 100 stores.

Nick Bubb at Arden Partners said: "Poor old Blacks is way off most people's radar screens, with a market cap of only £14 million at last night's close, but today's new disaster should not pass unnoticed."