AddThis

Genesco Shareholders Approve $1.5B Buyout

Nashville, Tenn., Genesco Inc. shareholders on Monday approved a $1.5 billion buyout by The Finish Line Inc. after concerns about the financial health of Genesco were raised by an investment bank financing the deal, according to the Associated Press.

UBS Loan Finance LLC and UBS Securities LLC, which had committed to financing the deal for Finish Line, said in letters released Friday that they were "extremely concerned about the apparent deteriorating financial position" at Genesco.

Genesco said late last month it lost $4.2 million in the quarter ended Aug. 4, compared to an income of $5.9 million in the year-ago quarter.

Still, Genesco denied in a release that it had experienced any “material adverse effect" from the acquisition agreement. Seventy-three percent of shareholders voting approved the buyout, the company said.

© 2014