Uncertainty for jobs at Blacks headquarters in Northampton as high court issues winding up order
BLACKS Leisure Group, which employs about 350 people at its Northampton headquarters, has had a winding up petition issued against it in the High Court.
The troubled outdoorwear business, which is based at Swan Valley, went into administration last month but was taken over immediately by fellow high street retailer, JD Sports.
But High Court listings showed a petition by HM Revenue and Customs against Blacks Leisure Group plc was made at the companies court on Monday.
If the petition was successful, then the company would be liquidated.
A spokeswoman for the Insolvency Service stressed that the outcome of the petition was not yet known so it could not comment on the Blacks case specifically.
However, she explained that, generally, administration was when another body had taken over a firm after financial problems, but winding up took the process a stage further.
She said: “Basically, a company in administration is in trouble and has been put into the hands of others to steady it.
“Any company that, after a successful winding up petition, goes on to be liquidated, is in the morgue.”
JD Sports bought all 290 Millets and Blacks stores belonging to Blacks Leisure, in a £20 million deal last month, when it was speculated that most of the 3,500 shop staff would be safe.
But Bury-based JD Sports did not announce any plans for the head office and warehouse in Swan Valley, and it was thought unlikely that the headquarters, which cost £26 million a year in rent and costs, would be retained.
JD Sports, whose largest shareholder, Pentland, owns the outdoor brands Berghaus and Brasher, completed the takeover as part of a “pre-pack administration”, in which a company emerges under new ownership following a pre-arranged sale.
Nobody at JD Sports was available to comment on the winding-up petition yesterday.
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Friday, February 24, 2012 at 08:42 PMWrong end of stick firmly grasped with story, methinks.
lady muck
Friday, February 24, 2012 at 06:07 PMCommon Sense...Perhaps I should not have assumed Hecto is 1005 correct...but he might be...There is a pecking order when a company goes bust...I think Revenue & customs gets first crack...then employees then unsecured creditors...not sure where Lloyds ranks.
TheCount
Friday, February 24, 2012 at 05:49 PMThank goodness Gordon No more Boom or Bust Brown saved the economy, that's all I want to say. These companies can run up debt, go into administration adn write off debt too easily. The tax payer seems to be the looser more often than not. Shameful.
Common sense
Friday, February 24, 2012 at 05:34 PMlady muck--I'm sure the Blacks debt has been provided for by the Bank a long time ago as Blacks has been displaying the inevitable signs of collapse for some time. Just because hecto says something here doesn't mean he's factually correct about the figures today.
lady muck
Friday, February 24, 2012 at 05:13 PMThe workers are not the only losers. Lloyds was bailed out by the Govt (ie you and me). It has just announced a £3.5b loss (and £375million bonuses. It now has the Black's bad Debt to add to this. The banks have been run with a level of incompetence that astounds !....
Common sense
Friday, February 24, 2012 at 03:41 PMSad day for the staff---hecto seems to suggest there's a magic alternative --back to sign on I suspect!
willi eckaslyke
Friday, February 24, 2012 at 03:29 PMHow will this affect the value of my extensive collection of 'Good Companion' tents?
hecto
Friday, February 24, 2012 at 03:19 PMNot really surprising. The £20 million paid for Blacks went to Lloyds bank. Lloyds bank still lost their shirt as Blacks owed them over £35 million. Everyone else owed money and shareholders did not get a penny. Probably unhappy about it. The winners. JD sports who bought assets at a fire sale price. I suspect they will get rid of many of the "saved" Blacks employees gradually. The administrators probably made a nice profit. Blacks management seemed to pay themselves well. I believe the highest director salary was £415 thousand.
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