Finish Line to Sell JackRabbit Business to CriticalPoint Capital
Sportswear retailer Finish Line said last week it would sell its 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 Finish Line's board of directors has approved the transaction, which is expected to close by the end of its fiscal fourth quarter. Under the terms of the agreement, affiliates of CriticalPoint Capital will become the owner of JackRabbit, which includes 65 retail stores currently operating under several banners, all JackRabbit leasehold interests and lease liabilities, intellectual property, and the JackRabbit trademark and name. JackRabbit staff will be employed by an affiliate of CriticalPoint Capital. Finish Line didn't disclose the deal value.
Total Retail's Take: Finish Line seems to be doing the right thing with this move. JackRabbit has been unprofitable for the sporting goods retailer for a while now. The business reportedly generated about $90 million in sales in the fiscal year ended February 2016, accounting for only 4.8 percent of Finish Line's total sales. Finish Line also said it's exiting the running specialty business, and instead focusing on serving its core Finish Line and Finish Line Macy's customers.