Blacks Leisure chief executive Neil Gillis, like his customers, has a mountain to climb.
His isn’t Scafell or Snowdon, but a hard financial ascent taking in refinancing and business turnaround before the peak – Blacks’ recovery – is reached.
At present, loss-making Blacks is in talks with lenders about agreeing an “appropriate long-term financing structure”. The retailer’s £35m facility has been extended until August 31 while the talks continue.
It is to be hoped that funding can be agreed because there is a profitable business there. The core of Blacks – its eponymous outdoors stores and sister chain Millets – made an operating profit, but group performance was dragged down by the boardwear division.
Boardwear always had the whiff of faddism about it. Blacks’ decision to get out of that market is sensible and should enable the retailer to devote all its energies to its outdoors division instead. Improvements are already under way at the outdoors arm. Remodelled Blacks shops, for instance, are putting in a performance well above the average for the chain.
But there are so many more opportunities. Walking is one of Britain’s most popular outdoor activities – about 38 million people are thought to go for a walk at least once a month. And then there are the adventurous souls who take up more technical challenges. Blacks’ chains provide access to both groups and as market leader, the retailer should be making hay – especially when so many people will be holidaying at home this year.
But to really move forward Blacks needs a change of attitude as well as a store makeover. Take its websites – they don’t reflect the sense of fun that characterises outdoor pursuits. This is an area that lends itself to the opportunities of social networking and the creation of communities, generating loyalty and sales.
Gillis has made progress since joining. Assuming the banks get on board there’s an opportunity to take Blacks into a new league.
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