Blacks Leisure seeking commercial property settlements

Posted 04/11/2009

Troubled retailer Blacks Leisure has offered a settlement to commercial property owners affected by its problems.

The outdoor equipment retailer, which owns the Blacks and Millets chains and the O’Neill surfwear brand, announced plans to close 89 loss-making stores across the UK at the end of September after running into financial problems.

It has now proposed a company voluntary arrangement (CVA) as part of a restructuring plan designed to save the business.

Under the terms of the CVA, the company is seeking to agree settlements with the owners of retail sites which have closed or are earmarked for closure.

It has set up a fund of £7.25 million to settle claims from the commercial property owners, with payments to be made in two instalments, in May and July 2010.

The CVA, which still requires approval from commercial property owners and other creditors, also seeks to vary the terms of agreements with landlords of stores which are staying open by asking them to accept monthly payments.