Blacks progress hit by profit warning

The extension – agreed with Lloyds Banking Group – will run for another year from August 31. However, the group said that ongoing discussions about the extension meant it had to postpone the exit from some of its loss-making boardwear stores. The retailer had been converting these shops to its Millets and Blacks fascias but continued negotiations meant the process was delayed. It said as a consequence it will miss market expectations.

Singer Capital analyst Matthew McEachran expects losses to be about £8m for the full year. He added: “We believe that with additional funding the turnaround can be accelerated. Although there could be further support from the lenders, at this stage it looks possible that additional funding could come in the form of an equity issue.”