GO Outdoors approaches Blacks about takeover

Successful outdoor clothing chain, GO Outdoors, is one of a number of companies understood to have approached beleaguered activity sports chain, Blacks, with a view to making a takeover offer.

Blacks appointed advisers last week to field takeover offers, after it was approached with several potential bids. Corporate finance advisory firm, McQueen, has been appointed to oversee a bidding process.

Blacks confirmed that it had engaged in discussions with several parties, but pointed out that there is "no certainty" that official offers will be forthcoming. Another company thought to have expressed interest is Lion Capital, the private equity firm that owns AS Adventure Group, the parent company of the Cotswold Outdoor shops.

Blacks reported a pre-tax loss of £8.4 million during the six months to the end of August, which was down on the £15.2 million losses reported for the same period in 2009. Its first-half sales - excluding its boardwear business, which was put into administration last year - fell by 22.6 per cent to £90.6 million, A Blacks spokesman said this was partly due to the closure of 88 loss-making stores.

Its chief executive, Neil Gillis, said that Blacks had made progress with its turnaround plan, but would not pay an interim dividend.

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