KPMG ADMINISTRATORS have sold Blacks Leisure to JD Sports as part of a pre-pack administration.
On appointment they sold the business to former competitor JD Sports which acquired all assets including, 302 stores operating under Blacks and Millets brands and 3,500 staff. There has been no redundancies.
A pre-pack administration entails the whole or part of a sale arranged prior to a business entering an insolvency process and sold immediately on appointment of administrators.
Fleming, partner and UK head of restructuring at KPMG, said: “Today’s sale allows the continued trading of all the shops. A sale via ‘pre-pack’ administration was required to rescue as much of the business as possible.
“Blacks has struggled, in tough economic conditions, to generate enough cash to service its high overhead costs. However, Blacks has a strong brand and accordingly generated a huge amount of buyer interest from some of the best known entrepreneurs and competitors in the market.”
The fast-track move is a bold departure from the norm, as a probe would normally only begin several months after administrators had finished their own enquiries
Head of Editorial Kevin Reed looks at the week's news, including the BHS and Austin Reed administration, Accountex and much more.
MPs launch probe into the sale of BHS that will look at role of auditors and accountancy firms in sale process
A short moratorium will give struggling companies a chance to be open with their creditors and negotiate a way out of their problems transparently, says Sykes