OUTDOOR retailer Blacks Leisure ploughed on with its store expansion plans yesterday in defiance of a potential takeover swoop by Newcastle United owner Mike Ashley’s Sports Direct.

Blacks said two outlets, including one in York, had already opened and another three were in the pipeline as it looks to continue its turnaround strategy, despite the Sports World parent’s moves to scupper its efforts to fund the additions.

Last month, Sports Direct snapped up 28.5per cent of Blacks and vowed to stop its rival raising money from shareholders. It has since confirmed it is considering a bid for the firm.

But yesterday, Blacks said the store roll-out was being funded by cashflow within the business after strong trading over the Christmas period.

It said in the absence of a takeover offer it would continue alternative plans to raise money and was in the process of negotiating further sites for both its Blacks and Millets brands.

The firm said terms have been agreed on five Blacks stores in Glasgow, Chester, Cheltenham, Stratford-upon- Avon and York. Of these, the York and Chester branches have begun trading and Blacks said early customer reaction has been very positive.

Chief executive Neil Gillis said: “We are two years into the turnaround programme for Blacks Leisure. The restructuring last year has put us into an ideal position to expand and the start of the store rollout programme is a critical point in the next phase of this turnaround programme.”

Last month, Sports Direct’s intervention forced Blacks to adjourn a shareholder ballot on its £20m fundraising, intended for up to 35 new stores.

Sports Direct effectively paid for the stake in Blacks a second time after its Sportsdirect.com retail business bought the Blacks stake and an 11 per cent holding in JD Sports Fashion from Ernst and Young, the administrator of collapsed bank Kaupthing Singer and Friedlander.

It had been locked in a dispute with Ernst and Young over ownership of the holdings since October 2008, with litigation on the issue set to continue despite the shares acquisition. Blacks has suffered a difficult past couple of years, leading to a restructuring and the closure of 87 lossmaking stores in the fourth quarter after securing a rescue deal with its landlords.

It has since reported improved trading and wants to refurbish its core estate and reopen in areas where it has closed stores that it felt were subject to high rents and lossmaking despite strong sales.

Including the new additions, the company has about 320 Blacks, Millets and Freespirit stores. It employs about 5,500 staff in stores and at its head office and distribution centre, in Northampton.