Finish Line-Genesco Buyout Trial Begins
Nashville, Tenn. Opening arguments were heard Monday in the trial involving Genesco Inc.’s attempts to salvage a $1.5 billion buyout by The Finish Line Inc.
In his opening statement, Finish Line’s attorney said that if a judge forces the chain to complete the buyout, both companies would ultimately fail.
Robert Walker, the lawyer for The Finish Line Inc., said his client initially saw the chance to acquire its larger competitor as a strategic opportunity to expand its market share in the mall retail sector.
Instead, the $54.50-per-share buyout agreement has led to a bitter legal battle over whether Finish Line and investment bank UBS AG should be allowed to walk away because of a long-term problem, called a “material adverse effect.”
Genesco’s earnings swung to a loss in the second quarter and dropped 65% in the third quarter. Walker said that Genesco’s worse-than-expected financial performance since the buyout negotiations indicates that the deal wouldn’t generate enough cash flow for the combined company to grow its business or pay its debt obligations to UBS.
Genesco rejected a slightly less generous buyout offer from Foot Locker Inc. in favor of the highly leveraged deal from Finish Line in June.
Genesco’s lawyer, Overton Thompson, said he would show evidence that Finish Line developed buyer’s remorse following “its zeal to beat out its fiercest competitor” to buy Genesco, and that UBS stood to lose hundreds of millions because of worsening credit conditions.
New Apple store opens today
NEW YORK Apple today is opening its newest store in New York City’s trendy Meatpacking District.
The West 14th Street store opens its doors at 6:00 p.m. Eastern time and will become the largest Apple Store in Manhattan. For the first time, the three-story store will feature two floors dedicated to products and a third to services, the company reported.
The services floor will feature a 46-foot Genius Bar and specially designed areas for workshops and personal training on applications such as Final Cut Pro.
Bed Bath and Beyond to open in Canada
RICHMOND HILL, ON Bed Bath and Beyond today announced that it will be opening its first store in Canada at the Glen Shopping Center in Richmond Hill, ON.
The 34,000 square-foot store will feature several of the retailer’s popular brands including SimpleHuman, Oxo, Breville and HoMedics, the company reported.
“We are excited to open our first store in Canada and to share our long standing traditions of exceptional customer service, great value and a broad assortment of merchandise with the GTA [Greater Toronto Area]. Our new location in the town of Richmond Hill, which is experiencing a time of extensive growth, is centrally located off major highways and offers easy access for customers,” stated Steven Temares, ceo of Bed Bath and Beyond.