The Millets stores are among those owned by Blacks Leisure

The board of troubled outdoor retail group Blacks Leisure has put the company up for sale.

And its directors warned that, with current debt levels of £36m, its shares could be worthless.

The announcement to sell off the company was made today by its directors, and follows a profit warning less than two weeks ago.

Blacks Leisure said it would also consider selling one or more of its brands. KPMG is handling any offers for the group, which entered into fruitless talks with potential buyers in autumn last year.

It has since put in various financial measures closing 88 of its stores and opening 13 new ones. It also came to a formal arrangement with its landlords to reduce rents on its High Street stores.

But the company has failed to raise the necessary cash to allow it to continue trading under its current structure.

Blacks said in a statement: “As a result, the directors now wish to invite offers to support further investment in the group, which is most likely to involve a sale of the company or sale of one or more of the group’s brands.”

Its High Street stores trade under the Blacks and Millets names.

“The company proposes to conduct the sale process through its adviser KPMG who should be contacted by any interested parties.

“As at 5 December 2011, the group’s net bank debt was approximately £36m. Given the current level of debt within the group, there can be no assurance that any sale would attribute value to the ordinary shares of the group.

“The group continues to be in constructive discussions with its lender, Bank of Scotland, who is supportive of the proposed sale process, which the directors are seeking to conclude during January.”

Shares in the company halved in value following the news and currently stand at 2p, having been worth 42p in January this year.