Blacks Leisure’s management celebrated the end of “an unwelcome distraction” when rival Sports Direct decided not to proceed with a takeover attempt.

Sports Direct, founded by controversial tycoon Mike Ashley, had raised the prospect of increasing its original 62p-a-share offer, which had been dismissed by Blacks.

It decided last week to walk away after concerns were highlighted about whether some suppliers would continue to supply Blacks if Sports Direct won control.

Sports Direct bosses reserved the right to renew their interest in certain circumstances, such as if another bidder announced a firm intention to make an offer for Blacks or if there is “a material change of circumstances”.

Blacks will now focus on its fundraising and turnaround plan, which it said is in the best interest of all shareholders.

Blacks’ shares fell on the news that Sports Direct had abandoned its takeover attempt.

However, some brokers believe that Blacks’ fundraising and restructuring puts the outdoors retailer in a good position to improve its performance.