RETAIL chain Blacks Leisure today asked City investors for more than £20 million to help fund a major overhaul and expansion of its estate.
The group, which operates its own brand shops as well as the Millets chain, is planning up to 35 new stores and the refurbishment of existing sites.
Blacks said the move represented the "crucial growth phase" of its recovery after a deal with landlords in November helped secure its future.
It will finance the strategy through the placing and open offer of new shares, which it hopes will generate net proceeds of £20.3 million.
Chief executive Neil Gillis said the company’s recovery plan meant it was now in a "stronger position than it has been for a number of years".
His confidence has been fuelled by recent trading after like-for-like sales improved 15.2% in the six weeks to January 7.
The company has 208 stores under the Millets brand and another 92 Blacks shops. It employs around 3,500 store staff and 450 people at its head office and distribution centre in Northamptonshire.
The firm’s expansion plan includes reopening shops in areas where it has closed stores that it felt were subject to high rents and therefore loss-making despite strong sales.
The fundraising will also pay for the refurbishment of its core estate, which Blacks said had suffered from years of underinvestment.
