Blacks losses show new boss Reynolds faces a tough job

The size of the task facing new Blacks Leisure boss Julia Reynolds was made plain today as the outdoor clothing and camping kit retailer unveiled another dire set of results.

Sales in the half year to the end of August tumbled by 7.2% to £81 million in what the company admits was an "extremely challenging period".

It plunged into a loss of £16 million and says it will continue to "evaluate future funding options".

The beleaguered shares slipped again today to stand at just 9p. At that price the company, a feature of high streets across the UK, is valued at £7.6 million.

Reynolds recently arrived as chief executive from Figleaves after earlier work at Tesco. She has embarked on a "comprehensive review of strategy" and insists a turnaround is possible.

Peter Williams was today appointed as chairman on a permanent basis. He said: "Under new leadership and with a fresh strategy and significantly enhanced retail expertise, there is a real opportunity with the right funding structure for the business to re-establish its forward momentum."

Aside from negotiations with banks, Reynolds must also deal with Mike Ashley.

His Sports Direct company owns 21% of the stock. Ashley has a fractious relationship with the company, which he has made several attempts to buy outright.

Reynolds plans to "differentiate" the company's two brands - Blacks and Millets. She is clearing "excess stock".