Finish Line to sell JackRabbit business to CriticalPoint Capital

Sportswear retailer Finish Line Inc said on Thursday it would sell its unprofitable JackRabbit business to CriticalPoint Capital LLC, two months after announcing that it would explore strategic alternatives for the specialty running gear unit.

JackRabbit, formerly known as Running Specialty Group, is a chain of 65 stores in 17 U.S. states selling running gear under brands such as Brooks, ASICS and Hoka One One.
The company did not disclose the deal value.

The business generated about $90 million (71 million pounds) in sales in the fiscal year ended February 2016, accounting for 4.8 percent of the company's total sales.
Finish Line said it expects to book a charge of about $33 million-$36 million related to the sale in the current quarter.

"As we exit the running specialty business, we dedicate our entire focus to serving our core Finish Line and Finish Line Macy's customers," Chief Executive Sam Sato said in a statement.
Finish Line, whose shares were up 1 percent in post-market trading, said it expects realise a cash tax benefit of about $29 million-$31 million from the sale, a portion of which it expects to receive in the current quarter.