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.
August sales up, but less than expected
August sales rose by 0.3%, less than expected and the biggest decline (0.4%) in almost a year, according to a government report. The numbers exclude automotive sales.
Retail sales excluding cars, parts and gasoline, fell 0.1%, the steepest decline since April. Core retail sales were unchanged in August after a 0.8% gain in July.
Purchases of motor vehicles and parts, which make up around one-fifth of all sales, rose 2.8%, the biggest rise since July of last year. Sales fell 2.4% at gas stations.
Clothing store sales slipped 0.1%, building materials and garden supply store sales fell 1%, and department store sales dropped 0.2%. Sales at food and beverage stores held steady.
AnnTaylor launches new high-end fashion line
NEW YORK AnnTaylor Stores Corp will roll out a high-end fashion line in 24 of its top stores next week. The line, called ‘Collection’, will be available on the company’s Web site in late September or early October, according to Maria Sceppaguercio, a spokeswoman for the company.
‘Collection’ is set to be 40% more expensive than the company’s usual merchandise, on average, and includes about 50 items, said Sceppaguercio.
AnnTaylor is also launching a line of beauty products and a new chain that will target baby boomers.