Blacks Leisure, the troubled outdoor retail specialist, is promising landlords of 89 stores it closed six months rent as part of a formal restructuring plan which has been approved by its bank .

In return for walking away from the 89 loss-making sites, the group is to offer landlords a "compensation pot" of around £7.25 million.

The move forms part of a Company Voluntary Arrangement (CVA) under which landlords agree to make financial concessions to ensure the survival of a tenant company.

Payouts under the fund will be made in two instalments, one in May 2010 and another in July 2010.

Under the plan, a further 291 stores will pay rent on a monthly instead of a quarterly basis for 18 months.

Blacks said it has also agreed with Bank of Scotland an extension of a standstill agreement announced on September 23, to December 23.

It will also secure a further £42.5 million in lending facilities from Bank of Scotland, a subsidiary of Lloyds Banking Group, if the CVA is approved.

In a statement, Neil Gillis, Black's chief executive, said: "The restructuring plan announced today and the new banking facility supporting it provide a realistic opportunity to ensure the survival of the core outdoor business which has the potential to become a strong, successful retailer."

Blacks hit trouble in September when it emerged it was about to breach its banking covenants - only a month after it had secured a new 12-month facility from Lloyds. The company, based in Northampton, blamed a sudden and unexpected deterioration in trading conditions.

It immediately placed Sandcity, a small loss-making subsidiary, into administration and closed a further 89 stores including about 50 from its loss-making boardwear division, which mainly trades under the O'Neill name.

The group has faced difficulties in drafting an acceptable CVA proposal following opposition from some landlords. Critics within the property industry fear the CVA process is being abused by struggling retailers to walk away from loss-making stores.

The group needs 75 per cent of its landlords, employees and suppliers to agree to the plan. An extraordinary general meeting will take place on 24 November.

Shares in the group, which have lost 38 per cent of their value over the last three months, remained unchanged at 30p.

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