Blacks Leisure creditors agree to rescue deal

The firm is one of the UK's largest retailers of outdoor goods

Creditors of Blacks Leisure have agreed a rescue plan that should allow the retailer to stay in business.

The outdoor goods company said 97% of creditors - primarily its landlords - had accepted its company voluntary agreement (CVA) to reduce its debts.

Blacks, which trades as Blacks Outdoor and Millets, said the agreement will safeguard 4,300 jobs.

Under the terms of the CVA, landlords of 101 closed or closing shops will accept reduced payoffs.

'Endorsement'

"This outcome is a powerful endorsement by the creditors of the company that the CVA is in the best interests of all concerned," said Blacks' chief executive Neil Gillis.

"With this support secured, we can now focus on realising the potential of the group's market leadership position in outdoor retail once again."

Blacks has seen sales fall sharply in the recession.

For the plan to go into effect, 75% of creditors had to give it their backing.

CVAs are an agreement between a company and its creditors, aimed at allowing firms time to address problems and then repay some or all of what is owed within an agreed timeframe.