Outdoor sports and leisurewear retailer Blacks Leisure Group Plc is closing around 45 loss making Millets stores as part of a reorganisation to stem falling sales.

The company, which also operates the Blacks, Freespirit and O'Neill fascias, says the store closures will cost around GBP14m (US$27.5m) and could lead to the loss of up to 100 jobs.

The group also issued another profits alert, saying its results for the year to end-February 2007 will be "broadly break even."

As a result of its cost-cutting measures, the roll-out of its Blacks Out of Town stores is being trimmed from ten to two in 2007-08, and has asked non-executive director Don Trangmar to act as a consultant to the commercial and product development teams.

"Together with continued tight controls on costs and working capital, these initiatives are expected to drive a materially improved performance in the next financial year," said chief executive Russell Hardy.

The troubled group has issued three profit warnings in the past seven months, blaming plummeting sales on a difficult Christmas and early post-Christmas period, unseasonably mild weather and growing price pressure from the rest of the market.