Blacks Leisure seeks CVA

Blacks Leisure Group, the owner of outdoor clothing chains Blacks and Millets, has today proposed a company voluntary arrangement (CVA) to its creditors.

Adminstrators at KPMG said the move would enable Blacks – which has 392 stores – to preserve 291 trading stores and safeguard up to 4,300 jobs.

Under the scheme landlords will be offered £7.25million which equates to around six months rent.

Richard Fleming, UK Head of Restructuring at KPMG, and proposed supervisor of the CVA, added: “The CVA proposal is asking the landlords of 101 unoccupied stores to come to a compromise on the company's financial liability. We believe the proposed CVA offers a fair balance between the operational needs of Blacks and the landlords' rights under the tenancy agreements. Given the size of the potential liability, the group will continue to pay rates until the leases are surrendered or forfeited in consultation with landlords.”