By Marcus Leach
Blacks Leisure, the outdoor retailers, have announced that they will enter administration, albeit on a brief basis, as part of a takeover deal.
On 23 December 2011, the company announced that a number of parties had submitted indicative offers to acquire the whole or substantially all of the trade, assets and brands of the group.
Since that date, the company and its advisers have continued to hold discussions with a number of selected parties who have now submitted their final offers, which include offers to acquire substantially all of the trade, assets and brands of the group.
Based on the level of final offers received and as previously foreshadowed in the announcement on 23 December 2011, no value will be attributable to the company's ordinary shares.
The Board has now determined that any sale of the trade, assets and brands will be effected through an administration process. Therefore it is expected that the process to commence the appointment of administrators of the company and certain of its subsidiaries will begin shortly although the actual appointments are only likely to take effect just before the completion of any such sale.
The operating subsidiaries of the group will therefore continue to trade through all outlets outside of an administration pending any sale. It is proposed that Brian Green, Richard Fleming and David Costley-Wood, partners of KPMG LLP, will be appointed as the administrators.
The company's ordinary shares have been suspended from trading on the London Stock Exchange with immediate effect.
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