US: Finish Line completes Man Alive exit deal
Athletic shoe and apparel retailer The Finish Line Inc has completed the deal to offload its unprofitable Man Alive urban apparel business to the owner and operator of the Jimmy Jazz stores.
The transaction, which was revealed on 22 June, involved Finish Line paying $7m in cash to newly formed company Man Alive Acquisition to take control of 75 retail stores under both the Man Alive and Decibel names.
Man Alive Acquisition (MA) is controlled by Jimmy Khezrie, the owner and operator of Jimmy Jazz stores.
It will also take on the leasehold interests and lease liabilities of Man Alive, as well as intellectual property, including the Man Alive and Decibel trademarks and trade names.
Finish Line said it expects to take a pre-tax charge of $13m to $18m in inventory and long-term asset write-offs.
The Indianapolis-based retailer said the decision to exit Man Alive would allow it to focus instead on its core operations.
A poor performance at Man Alive was largely blamed for pushing Finish Line to a first quarter loss of $608,000.
The retailer reported a pre-tax operating loss of $0.9m, with Finish Line posting an operating income of $3.0m and Man Alive an operating loss of $3.9m.
Sales at the retailer dropped 7.2% to $267.2m.By division, comparable store sales for Finish Line fell 3.9%, while Man Alive plunged 39.1%.
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