Blacks Leisure mulls financing options

LONDON (Reuters) - Outdoor goods retailer Blacks Leisure Group (BSLA.L) will examine all options to raise additional funds, including a possible equity issue, its chief executive said.

"We'd look at all possible options," Neil Gillis told Reuters in an interview on Wednesday when asked if an equity capital raising was being considered.

"The view we've got is that the business would benefit from additional capex in order to accelerate the turnaround. We don't have a strong view as to where that capex needs to come from."

Gillis was speaking after the group, which trades from a 372-store outdoor division, comprising Blacks Outdoor and Millets, and a 43-store loss-making boardwear division, comprising Freespirit and O'Neill, said it was in an "advanced state of negotiation" with Lloyds Banking Group (LLOY.L) for the renewal of its existing working capital facility of 35 million pounds.

Blacks wants to develop its outdoor business and exit boardwear by converting stores, but needs cash to do it.

As well as the working capital facility it is also seeking 10 million pounds of additional funds from Lloyds but it is not certain the bank will accede to its request.

"Our main requirement is to get 12 months working capital in place so that everyone can feel confident and relaxed about the business," said Gillis.

"The additional funding was always going to be handled separately."

Shares in Blacks, which have lost over half their value over the last year, were down 3 percent at 1245 GMT, valuing the business at 20.5 million pounds.

(Reporting by James Davey; editing by Elaine Hardcastle)