Blacks Leisure is poised to close its Sandcity business, the division that distributes and sells the O’Neill franchise, according to reports.

The move could see the retailer close its O’Neill boardwear stores and would free the retailer up to concentrate on a turnaround of its core business.

According to The Sunday Times, Sandcity, a separate legal entity that owns O’Neill stores, could be put into administration, leading to the closure of 12 shops. KPMG has been put on standby as administrator.

Sandcity has 12 shops in locations including Bluewater shopping centre in Kent.

Alternatively the stores could avoid going into administration if Blacks can find someone to take them over immediately.

Blacks is thought to have held talks with Ronald de Waal, the Dutch owner of the O’Neill brand name.