Finish Line (Indianapolis) plans to sell its unprofitable urban-and-street focused division, Man Alive. The national sportswear chain has entered into an agreement with a newly formed Man Alive Acquisition LLC, operated by Jimmy Khezrie who owns and operates Jimmy Jazz urban-clothing.
Finish Line will pay the company $7 million, including $5 million in cash, to take over certain assets, including 75 Man Alive retail stores, the leasehold interests and lease liabilities of Man Alive, as well as intellectual property, including the Man Alive and Decibel trademarks and trade names.
Finish Line ceo Glenn Lyon says the transaction will allow the company to focus its resources on the core Finish Line business, which will take a pre-tax charge of $13 to $18 million related to inventory and long-term asset write-offs. The specialty retailer expects to report first quarter same-store sales declined 3.9 percent for its Finish Line division and 39.1 percent for Man Alive.