UK outdoor retailer Blacks Leisure is planning a share sale to raise capital for opening and refurbishing new stores.

The company told the London Stock Exchange that it hopes to raise around GBP20.28m (US$31.8m) from the placement.

A total of 40.7m shares are proposed to be issued through the proposals, and the net proceeds will be used to fund the opening of new Outdoor stores, and refurbish existing stores.

Neil Gillis, chief executive of Blacks Leisure, said: "The fund raising proposals being announced today will enable us to pursue the crucial growth phase of our recovery plan.

"The proceeds will underpin a selective expansion of our outdoor retail estate by the addition of up to 35 new stores, in towns where we have previously traded successfully or which currently lack an outdoor retail offer, and accelerate the refurbishment of our core estate which has suffered from years of underinvestment.

"With a clear and well financed recovery plan now in place,  Blacks Leisure is in a stronger position than it has been for a number of years to realise the potential of its market leadership position in outdoor retail and deliver returns to shareholders."