Blacks snaps up ailing Army stores

SPORTS and outdoor clothing group Blacks Leisure has expanded its nationwide presence by snapping up 47 outlets from Famous Army Stores, the retailer that went into administration last month.

Administrator PriceWaterhouseCoopers failed to sell the chain as a going concern and it is now selling the 200 stores separately. Blacks paid £1.7m for the stores. It will convert most of them into the Millets brand but some will be given the Blacks Outdoor fascia.

Foot-and-mouth disease and tough competition pushed Famous Army Stores into a £2.5m loss last year. Blacks' outdoor arm was also hit by the drop in demand for hiking and camping gear, with half-year profits cut to £3.6m from £6.1m.

But last month the retailer, which also owns 187 First Sport shops, reported same-store sales growth of 9.4% for the six weeks to 5 January. Blacks is expected to report profits for the full financial year to 28 February of £14m, from £19.7m a year ago.