Blacks Shares Fall 9% as Sales Decline, Debt Limit Increases

Blacks Leisure Group Plc (BSLA), a U.K. outdoor clothing retailer, fell the most in a month after the company said sales were falling and debt levels increasing.

Shares tumbled 10 percent, or 1.63 pence in London to 14.62 pence at 8:24 a.m., the biggest fall since March 15, giving the company a market value of 12.3 million pounds ($20 million).

Group revenue in the 19 weeks ended July 9 fell more than forecast to 54.6 million pounds from 61.3 million pounds a year earlier, with same-store sales declining 9.7 percent, according to a statement on Regulatory News Service.

Black’s debt has “increased significantly,” according to the statement. The company has agreed to an increase in its debt limit to 40 million pounds until Dec. 15, an increase of 2 million pounds above its usual maximum facility.

“It’s worrying that they’re that close to their banking facilities,” said Andrew Wade, an analyst with Numis Securities. “Cash is clearly pretty tight, but Blacks need the cash to improve the situation,” Wade added, citing store refurbishments as a priority. He is reviewing his “add” recommendation.

To contact the reporter on this story: Ed Ballard in London at eballard2@bloomberg.net

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net

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