Blacks looks to exit 101 stores with CVA proposal

Blacks Leisure has unveiled details of a proposed company voluntary arrangement (CVA) as part the group's restructuring.

KPMG has been appointed to supervise the process which would see the outdoor specialist exit 101 of its 392 stores.

KPMG UK head of restructuring Richard Fleming said:  "The proposed CVA gives Blacks the opportunity to preserve 291 trading stores and around 4,300 jobs.  The CVA proposal is asking the landlords of 101 unoccupied stores to come to a compromise on the company's financial liability."

He added: "We believe the proposed CVA offers a fair balance between the operational needs of Blacks and the landlords' rights under the tenancy agreements.  The total compensation being offered to the landlords is £7.25m, which equates to approximately 6 months rent each.  In addition and importantly, 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."

Meetings will now be held with landlords to explain the details and a creditors' meeting will take place on November 23, 75% of the creditors will need to agree to the CVA terms for it to be passed.  

The rest of Blacks' creditors will not be asked for any financial compromise but the landlords of the remaining stores unaffected by the CVA have been asked to offer monthly rent payments for 18 months.