Genesco Inc has demanded that The Finish Line completes its $1.5bn acquisition of the clothing and hat firm after accusing its bankers of trying to get out of the deal.

The latest twist to events comes after UBS Loan Finance LLC and UBS Securities LLC, the two companies financing the buyout, said yesterday (19 September) that they have stopped work on closing the agreement pending further analysis of "Genesco's financial condition and performance."

However, Hal N Pennington, Genesco's chairman and chief executive officer, said he believes the bankers are looking for a way out of the deal, "because the upheaval in the credit markets makes this deal less profitable for them."

In a letter to Finish Line's chairman and CEO Alan H Cohen he urged the athletic shoe and apparel retailer to enforce its rights under the commitment letter.

He added that "combining our businesses makes great strategic sense."

Finish Line first revealed its doubts about the deal at the end of August, when Genesco swung to an unexpected second quarter loss of $4.2m and sales fell short of forecasts.

Nashville, Tennessee-based Genesco, owner of brands such as Journeys and Johnston & Murphy, blamed its poor performance on blaming a late start to the back-to-school season and sales tax holidays in Texas and Florida, coupled with "a generally challenging retail environment."

However, last week, UBS added that it too was "extremely concerned" about Genesco's "apparent deteriorating financial position," and demanded "unfettered access to Genesco's books and records and other financial information."

In the meantime, Genesco's shareholders on Monday (17 September) voted in favour of its proposed sale to Finish Line, which is worth $54.50 per share.

Genesco in June agreed to Finish Line's offer of $54.50 per share for the company, after rejecting two earlier takeover bids from Foot Locker.

The transaction was due to be completed this autumn, and would have given a combined company with annual revenues of around $2.8bn and 2,870 retail stores.

The two shoe specialists were courting the trendy casual footwear retailer to try to offset slumping sales of athletic shoes.

At the end of last month there was still market optimism that the Genesco buyout would take place, but that Finish Line would seek to renegotiate the deal for a lower price.