After almost two years of experimenting and trying to carve out a niche with active women shoppers, The Finish Line Inc. is closing down its Paiva e-commerce site and stores.
The Finish Line, No. 154 in the Internet Retailer Top 500 Guide, launched Paiva.com and a series of specialty stores aimed at active women ages 25-40. The web site and network of 15 stores sold shoes, clothing and accessories to active women who exercise frequently and engage in multiple athletic activities such as running, fitness, dance, yoga, Pilates and various seasonal sports.
The Finish Line is closing down the brand by the end of the third quarter after a strategic review of the business. "Consumer response to Paiva has been positive, however, we believe we can realize more acceptable returns in the near term by directing resources toward the company's core concepts," says The Finish Line CEO Alan Cohen.
In connection with closing down Paiva, The Finish Line expects to record a pre-tax expense of approximately $21 million over the second and third quarters of fiscal 2008. The expenses consist of approximately $12 million of long-term asset costs, $8 million of lease termination costs and $1 million of inventory write-offs, the retailer says.
The Finish Line announced in June a pending merger with footwear and apparel retailer Genesco Inc. The transaction is valued at $1.5 billion. To assist with the merger, The Finish Line has retained business consulting firm Bain & Company.
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