Blacks Leisure will bring forward some of its recovery plans following the emergence of accounting discrepancies of about £2 million at its Sandcity subsidiary.

Blacks chief executive Neil Gillis suspended Sandcity managing director Darren Spurling this week and has instigated a full inquiry. Sandcity, which distributes and retails the O’Neill boardwear brand, operates as a separate entity in Washington, Tyne & Wear.

“There is no evidence that any cash has left the business,” Gillis told Retail Week. “At the moment, it looks like an over-statement on the accounts.”

Gillis said the discrepancies are “irritating”, but would not get in the way of Blacks’ recovery programme. “We have this week started the 30-day consultation with Sandcity employees to merge it with the rest of the Blacks business and this has been brought forward because of what we found there,” he said.

If the merger goes ahead, the Washington head office and warehouse will close and its 59 staff will either be made redundant or relocate to Blacks’ head office in Northampton.

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