The Finish Line Offloads JackRabbit Business

Posted: Updated:
JackRabbit stores began in New York City. JackRabbit stores began in New York City.

Indianapolis-based The Finish Line (Nasdaq: FINL) has found a new owner for its troubled running specialty unit. The retailer says it has entered into an agreement with a private equity firm in California to sell its once-promising, but now unprofitable JackRabbit business. The JackRabbit brand and its 65 retail locations throughout the country will be property of CriticalPoint Capital LLC in a deal that is slated to close in The Finish Line's fiscal fourth quarter.

The company announced plans in November to explore options regarding the business, which was previously known as the Running Specialty Group, and had been grown through multiple acquisitions over the past few years. Its earnings report last month showed a fiscal third quarter loss of more than $40 million.

The Finish Line expects pre-tax charges related to the transaction to total between $33 million and $36 million in the fiscal fourth quarter.

Chief Executive Officer Sam Sato says "as we exit the running specialty business, we dedicate our entire focus to serving our core Finish Line and Finish Line Macy's customers and driving profitable results that provide return to our shareholders. The JackRabbit team - both in their main offices in Denver and throughout the field - genuinely work hard to serve running and fit enthusiasts within their local communities. With CriticalPoint retaining those employees, they will continue to deliver a high level of customer service and offer industry leading branded footwear, apparel and accessories."

Members of the JackRabbit staff will be employed by a CriticalPoint Capital affiliate.

You can read more about the sell-off by clicking here.

  • Perspectives

    • Creating the Work Spaces that Draw Talent to Indianapolis

      The future economy will be driven by data, powered by robotics and heavily invested in the building blocks of nature – biotech and genetic engineering. That’s true of the economy nationwide, and it’s especially true here in Indianapolis, where dominant pharmaceutical and biotech companies are putting us at the cutting edge of the science-based economy. It all sounds larger than life. But the facilities that will house these industries will always be...

    More

Events



  • Most Popular Stories

    • The Honda Greensburg plant opened in 2008.

      Honda to Invest $4M, Add Jobs at Greensburg Plant

      The American Honda Motor Co. continues to invest in its Greensburg, Indiana plant as it has announced the factory will be producing the company’s first electrified sport utility vehicle in the U.S. The company says it will invest more than $4 million and add 34 new jobs in the plant to support production of the CR-V Hybrid.  

    • Amanda Stephenson is the founder and president of Expert RN|MD. (Inside INdiana Business Photo/Mary-Rachel Redman)

      Medical Consulting Firm Opens Downtown Indy HQ

      A medical consulting startup is celebrating the grand opening of its new downtown Indianapolis headquarters. The Indiana Economic Development Corp. says Expert RN|MD, which provides medical consultation services to law firms and life science companies, is investing $1.7 million in the new location and plans to create up to 21 jobs by the end of 2023. The firm was founded in 2018 and recently renovated the 4,000-square-foot space in the downtown's Wholesale District. In an interview...

    • Allison and Stanley Chen provided the lead gift for the campaign. (Provided Photo/ISI)

      International School Launches Capital Campaign

      The International School of Indiana has publicly launched a capital campaign to establish a unified campus in Indianapolis. As part of the ONE ISI campaign, the school is looking to raise $6.5 million to build a new school building for pre-elementary and elementary students at the site of its middle and high schools. The public launch follows a 10-month silent phase of the campaign, during which ISI raised $5 million from more than two dozen donors. Currently, ISI's operations are...

    • Rendering courtesy of the city of Fort Wayne

      Mayor Henry Announces Developer for $70M Project

      Fort Wayne Mayor Tom Henry has named Indianapolis-based Barrett & Stokely the developer for a $70 million project on the city's riverfront near Promenade Park. The company was selected from a group of five firms that submitted requests for proposals to spearhead the project.

    • Money magazine judges Fishers as 3rd best place to live in the U.S.

      Fishers Makes Top 10 List of 'Best Places to Live'

      Three communities in Indiana made the top 100 list of best places to live in the country, but only one made the top 10. Fishers was judged by Money magazine as the third best place to live in the United States, behind Clarksville, Tennessee and Round Rock, Texas.