Blacks Leisure Group will close its Sandcity Washington, Tyne & Wear head office and distribution centre and merge the business with its Freespirit operation in Northampton.

Following a consultation with its employees at Sandcity, which distributes and sells the O’Neill boardwear brand in the UK, the integration will commence immediately and is expected to be complete by June.

The merger will result in the loss of 50 jobs at Washington and 14 new roles being created in Northampton.

Where possible, existing employees in Washington will be offered the opportunity to relocate to Northampton. Sandcity’s freehold warehouse and offices, comprising 147,000 sq ft, will be sold off.

Blacks chief executive Neil Gillis said: “Our recovery plan for the group identified that reducing the cost base and improving operational efficiencies were key to the future of the business. The decision to merge the Sandcity and Freespirit operations will eliminate duplication of functions within the boardwear business and deliver cost savings. While the job losses are regrettable, this action is essential to help restore the group to an acceptable level of performance.”

Blacks suspended Sandcity head Darren Spurling in March this year after discovering£2 million worth of accounting discrepancies.

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