Parent Company Seeks to Sell Lids Sports Group

Posted: Updated:
The Lids Sports Group headquarters in Zionsville opened in 2016. The Lids Sports Group headquarters in Zionsville opened in 2016.
ZIONSVILLE -

The Tennessee-based parent company of Lids Sports Group is attempting to sell the headwear and team athletics retailer that is headquartered in Zionsville. Genesco Inc. (NYSE: GCO) says it's part of an effort to focus on its footwear business, which includes Journeys locations in the United States and Schuh stores in the United Kingdom. The company says a strategic review process has found the move would create "the optimal platform to deliver enhanced shareholder value over the long term."

Wall Street advisor PJ SOLOMON has been hired to help guide the process and Genesco has appointed a four-member special committee to oversee the proposed sale.

In a news release, special committee chairman James Bradford said "the steps announced today reflect the results of an examination by Genesco's board and management of strategic alternatives with the intent to enhance shareholder value. The Lids Sports Group has been an important part of Genesco, and we still see significant potential for the business. We believe, however, that it is in the best long-term interests of the Company and its shareholders to focus on building upon our core footwear platform, in which the businesses share common strategic characteristics and where we believe we can generate greater operating efficiencies and synergies. Additionally, we believe Lids Sports Group is undervalued as part of Genesco and that its sale would generate capital that the Company can deploy productively to further enhance shareholder value."

In late-2016, Lids Sports Group relocated from Indianapolis to a new, more than $20 million headquarters in Boone County. The expansion plans were announced in 2014 and included adding up to 758 jobs over the course of a decade. Genesco acquired Hat World Inc., which currently operates branded stores including Lids, Locker Room by Lids and Lids Clubhouse, in 2004. Hat World first launched in Lafayette in 1995. Its portfolio was slimmed down in January 2016 with the sale of Lids Team Sports to a Texas company for an undisclosed sum.

Genesco says it does not plan to make additional details of the process public "unless or until a definitive transaction agreement is reached or until the board determines to conclude the process." Genesco's footprint includes a presence in more than 2,725 retail stores and leased departments in the U.S., Canada, the U.K., Ireland and Germany.

  • Perspectives

    • Scott Flood is the owner of Scott Flood Writing.

      It's About People, Not Products

      Today's companies offer an amazing array of products and services. Surprisingly, the best way to promote those products and services is to stop talking about them. No, I’m not advocating that products should sell themselves, or that marketing efforts are useless. Quite the contrary. What I’m saying is that so often, companies become so focused on their products and services that they forget why those products and services exist.

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • Long John Silver's Acquires Indiana Restaurants

      Louisville-based Long John Silver's has acquired more than 70 restaurants, most of which are located in Indiana, from Jasper-based ServUS. Financial terms of the deal were not disclosed, however the company says no jobs will be affected.

    • Anthem Details Indy HQ Plans

      Anthem Inc. (NYSE: ANTM) says it will invest $20 million into converting its largest downtown Indianapolis facility -- located on the south side of the city -- into its new corporate headquarters. The city says the move will keep the state's largest publicly-traded company in the city where it was founded nearly 75 years ago. The space will be home to more than 2,600 on-site workers and support over 2,300 additional workers throughout the state.

    • Hogsett Hopes Amazon 'Takes Note' of Indy Momentum

      Indianapolis mayor says Joe Hogsett Anthem Inc.'s (NYSE: ANTM) $20 million headquarters project, along with recent significant announcements from India-based Infosys (NYSE: INFY) and Genesys show the city remains a magnet for corporate headquarters. Hogsett says, even "without the 64,000-pound elephant in the room being mentioned," he expects a decision on the Amazon HQ2 location by the end of the year, and continues to believe Indy is...

    • (photo courtesy Blue Chip Casino)

      Michigan City Casino to Expand

      The Blue Chip Casino, Hotel & Spa in Michigan City is set to undergo an expansion later this year. Financial details were not released, however the casino says the effort will add nearly 15,000 square feet of meeting and event space. Construction on the expansion is expected to begin at the end of the year and be complete by the fall of 2019. The project will include a new 11,000-square-foot ballroom that can be divided into six smaller rooms, as well as 3,800 square feet of...

    • State Details Rural Strategic Plan

      Lieutenant Governor Suzanne Crouch and the Indiana Office of Community and Rural Affairs have unveiled their strategy to support and elevate rural communities throughout the state. The Strategic Plan for Rural Indiana focuses on several key priorities, including growing access to rural broadband service. Crouch says the plan was put together after OCRA received input from community members in rural areas and the agency will put that information into action.