Blacks Leisure Group has updated investors about its own status since early January, when it announced its results for the Christmas season. Since then, it has performed as expected, with the outdoor group excelling and the boardwear group continuing to falter. The newly formatted outdoor stores have been 21 percent ahead at the gross profit level since they were converted.
Since the beginning of the year, Blacks has turned eight of its boardwear stores – about a fourth of the total – to outdoor stores and they are doing well; the group will continue the switch throughout the current fiscal year, which began on March 1.
With Blacks intending to get out of boardwear entirely, it expects an exceptional goodwill impairment charge of about £1.7 million (€1.8m-$2.5m) related to that business. This will get rid of all remaining goodwill for boardwear on the balance sheet. It also expects an exceptional £3.2 million (€3.4m-$4.7m) non-cash provision for onerous leases, related to stores that are slated to be closed, to lower the results for the financial year that ended Feb. 28. During the past fiscal year the group sold or assigned for a shutdown 12 stores, and the economic and retail environment in the U.K. has been worsening.
Blacks Leisure also announced that it has been approached by third parties considering making offers for the business. They are currently in the first phases of discussion, but the company says that it is too early to say if an offer will be made or what the possible terms might be.