Blacks Leisure operates brands including Freespirit, Millets, Mambo and O’Neill.

Blacks Leisure, which owns brands including Millets and Freespirit, has revealed its latest restructuring plans which will result in the closure of 89 stores and the loss of 50 jobs.

The news follows an announcement by the outdoor clothing company on 22 September that it had “breached its covenant” with its banker Lloyds Banking Group and had agreed a standstill contract in order to satisfy the lender.

Blacks said the situation was “highly regrettable” but it will begin consultations with employees particularly at the Northampton head office, where the headcount will reduce by 50 representing 20% of the head office workforce.

It said it has also begun consultations with staff at the 89 loss-making stores which are set to close, and which it says have not traded profitably for many years.

This latest move follows news earlier in the month that it had to allow Sandcity - which retails predominantly boardwear clothing under the O’Neill brand – to go into administration.

In a statement Blacks said: “The Directors of Sandcity have concluded that there is no reasonable prospect of restoring profitability in the medium to long term and Sandcity is no longer in a position to trade as a going concern.” 

Richard Fleming, UK Head of Restructuring at KPMG, was appointed administrator Sandcity. He said: “The outdoor leisure market has become increasingly competitive in recent years and, indeed, the leisure market has been affected profoundly by the recession as consumers rein in discretionary spend to focus more on essential items.”

Mr Fleming confirmed that while a buyer was being sought, the stores would continue to operate and said there were no plans for redundancies at this time.