Finish Line Subpoenaed in Genesco Deal
New York City, Finish Line Inc. said in a regulatory filing on Thursday that it received a subpoena from federal prosecutors in New York related to its proposed acquisition of shoe retailer Genesco Inc.
Finish Line in June agreed to pay $1.5 billion for Genesco, but has since tried to back out of the deal.
The subpoena from the U.S. Attorney for the Southern District of New York is in response to alleged violations of federal fraud statutes. Genesco also received a subpoena related to the investigation earlier this week.
In a filing with the Securities and Exchange Commission, Finish Line said according to the subpoena, if it produces documents relating to the acquisition by Dec. 7 it will not be required to testify at the grand jury investigation. The company added it is in the process of complying with the subpoena and does not believe that the company or its executives are targets of the investigation.
Separately, a trial is scheduled for next month over whether Genesco’s worse-than-expected financial performance since the deal was announced should be considered a “material adverse effect,” or a fundamental long-term flaw that would allow the buyers to get out of the deal.
CVS/pharmacy Nov. comps up 4.4%
WOONSOCKET, R.I. CVS Caremark today announced that same-store sales in its CVS/pharmacy division for the four weeks ended Nov. 24 increased 4.4% over the prior year period. Pharmacy same-store sales increased 4.4%, and were negatively impacted by approximately 450 basis points due to recent generic introductions. Front-end same store sales increased 4.6%.
Same-store sales at CVS/pharmacy for the forty-seven week period increased 5.7% over the prior year period. Pharmacy same-store sales increased 5.6%, while front-end same-store sales increased 6%.
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Best Buy helps ease holiday shopping
MINNEAPOLIS Best Buy announced today that is launching a series of programs designed to ease the pressure of holiday shopping.
Among its initiatives to improve the shopping experience, is the company’s reassignment of about 30% of its sales floor to a new cross-trained customer assistant position, who, according to the company would enable customers to get more personal interaction during peak shopping times. The customer assistants will be supported by BlueShirts who have a better understanding in specific consumer electronics categories.
Best Buy also said that it has revamped its return policy, extending the deadline on all products to Jan. 31, 2008. According to the company, the policy even include products such as computers and digital cameras which were previously limited to 14 days.
“We start holiday planning 11 months in advance so we can provide the very best experience possible,” said Brian Dunn, president and coo at Best Buy. “Our holiday approach is focused on bringing our customers complete gift solutions by offering a wide range of products, knowledgeable sales associates, and premium service to customers whether it’s in store, online or through our phone channel.”
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