Finish Line announced on Tuesday that it is exploring alternatives for its specialty running store chain JackRabbit. According to Finish Line, in order to increase the overall shareholder value of their brand they are looking to “simplifying their business” which means the potential sale of JackRabbit.
Finish Line’s board of directors and management team are working with Peter J. Solomon as a financial advisor. They have provided no definitive timeline or confirmation that the talks will result in the sale of JackRabbit. Finish Line says they won’t provide any further updates until the board comes to a final decision.
Because Finish Line has realized the financial shortcomings of JackRabbit despite paying the premium for its acquisition, they expect to record a goodwill impairment charge in the third quarter of approximately $44 million.