Blacks allays City fears by hiring external chief

Gillis has 20 years’ experience in the consumer goods and leisure industries. Before joining Esporta, he worked at Greene King, Heinz, Cadbury Beverages and Procter & Gamble.

Broker Landsbanki said the appointment brought clarity, ending speculation that had persisted since former chief executive Russell Hardy left Blacks in June.

However, Landsbanki noted that Gillis has no retail experience. The broker said that, if the full potential of the business is to be realised, radical action needs to be taken to drive sales and profit densities.

Gillis takes up his post immediately and replaces finance director Keith Fleming, who has held the fort since Hardy’s departure. Fleming will retain his finance director role, but also assumes the new position of deputy chief executive.

Fleming was in the frame for the top job, but shareholders led by Principle Capital Trust are understood to have called on Blacks chairman David Bernstein to hire an external boss to give the business renewed impetus.

Blue Oar Securities analyst Greg Lawless believes Fleming will be disappointed not to have become chief executive.

“Keith has done a good job in the interim and is ambitious,” said Lawless. “And you have to ask the question, does a business with a turnover of£300 million need a deputy chief executive?”

Lawless said Gillis’s appointment was strong and he should now concentrate on the proposition and cost base. “All that matters is that he is consumer-facing, not that he doesn’t have direct retail experience,” he said.

He also pointed out that shareholder Mike Ashley still looms in the background. The Sports Direct founder, who owns 29 per cent of Blacks, has previously paid up to£4 a share. The anniversary of that purchase expires in the next few weeks, allowing Ashley to buy at a lower price.

“The retailer is wide open, but there is no guessing what Ashley might do,” said Lawless.