BREAKING: Genesco sues Finish Line to close deal

Genesco Inc. said today it sued Indianapolis-based Finish Line Inc. and Finish Line’s bank to force Finish Line to close its $1.5 billion acquisition.

“No more delays by The Finish Line and UBS; no more reservation of rights; no more bankers’ putting their pencils down,” Genesco CEO Hal Pennington said in a statement. “We want a court of competent jurisdiction to enforce our rights…”

The suit was filed in Chancery Court in Genesco’s headquarters city of Nashville, Tenn.

Athletic shoe and apparel retailer Finish Line and UBS Financial Services Inc. have balked over the June cash offer since Genesco reported a $4.2 million loss in its second quarter.

Finish Line and UBS can back out of the deal if Genesco, parent of Journeys, Hat World and other mall retailers, experiences material adverse change. However, analysts doubt one quarter loss would qualify to trigger the provision.

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