Genesco initiates process to sell Lids
Genesco, Inc. announced it is initiating a formal process to explore the sale of Lids Sports Group so that the company can focus entirely on its footwear business.
Genesco's ownership of the Lids Sports Group business includes Lids headwear stores, the Locker Room by Lids and other team sports fan shops and single-team clubhouse stores. Genesco's footwear business includes ownership of the Johnston & Murphy brand, the Trask brand, and the licensed Dockers brand among others.
James W. Bradford, Genesco's lead independent director and chairman of the special committee exploring the sale, said it is in the company's best interest to consolidate and focus on its footwear business.
He said that across the footwear category, "the businesses share common strategic characteristics... where we believe we can generate greater operating efficiencies and synergies."
Bradford added that the company believes that "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."
Genesco is sold in over 2,750 retail stores and leased department stores in the US, Canada, the UK, Ireland and Germany. Retail channels it owns include Journeys, Journeys Kidz and Johnston & Murphy stores.
The company stated it will not comment further on the potential of a sale until a definitive transaction agreement is reached or until the board decides to conclude the process of exploring a sale.
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