Member Article

Blacks to cost JD Sports up to £15m

Blacks Leisure may cost sports retailer JD Sports a further £15 million this year, after it purchased the ailing outdoor chain in January.

In the current financial year, Blacks is expected to report an operating loss of £10 million. JD Sports could also be facing a further bill of up to £5 million of restructuring charges to turn Blacks around.

The retailer now hopes to return Blacks to profitability in the medium term. A spokesperson said that Blacks had an “excessively large and over rented store portfolio”, which had contributed to losses of £2.2 million in the three weeks to 28 January.

By contrast like-for-like sales at JD sports rose 1.2% over the 19 weeks to 9 June. These figures did not include training at Blacks.

This level of trading was in line with expectations, although profit margins continue to be pressured as shoppers target special offers.

This was posted in Bdaily's Members' News section by Ruth Mitchell .