A Tennessee court has ruled against Finish Line Inc., saying it must complete its $1.5 billion purchase of Nashville, Tenn.-based Genesco Inc. Finish Line has been trying to walk away from the deal due to Genesco's poor financial results in the second quarter. But the court ruling said the Indianapolis-based shoe retailer would breach its pact by doing so. Finish Line said it is "disappointed" by the ruling and may appeal.
The Nashville court said that the U.S. District Court in the Southern District of New York will determine in another lawsuit if the merged entity would be insolvent and therefore allow the deal to dissolve.