Blacks Leisure rejects Sports Direct takeover offer

Blacks has shut stores recently and reported better trading

Blacks Leisure has dismissed a £26m takeover approach from Sports Direct as "wholly inadequate".

Sports Direct, which is controlled by the Newcastle United owner, Mike Ashley, had offered 62 pence per share, Blacks said.

Sports Direct, which owns Sports World stores as well as brands including Slazenger and Dunlop, already owns almost 30% of Blacks shares.

The Blacks group includes Millets and Freespirit as well as the Blacks shops.

Blacks recently said it was on a "much stronger footing" after it closed 87 loss-making stores and reported good Christmas trading.

The closures included its O'Neill shops, which specialised in surfwear.

Last month, Sports Direct blocked Blacks from raising about £20m from shareholders as part of a drive to open new stores.

However, Blacks has vowed to press on with expansion plans. It said it would try to get around its suitor's objections to the fundraising by only requiring a majority of shares to be in favour of the plans.