GENESCO RECEIVES SUBPOENA FROM THE US ATTORNEY

And you think you got problems? Retailer Genesco (who owns Hat World/Lids) has received a subpoena from the Office of the US Attorney for the Southern District of New York, for documents relating to the hat retailer's proposed merger agreement with The Finish Line.

The subpoena states that the documents are sought in connection with "alleged violations of federal fraud statutes," relating to efforts by Swiss bank UBS to withdraw from financing the merger.

"The US Attorney subpoena comes on the heels of the baseless fraud allegations made by UBS ten days ago,” said Genesco chairman and CEO Hal Pennington. "These allegations are completely without merit and are simply part of UBS' litigation tactics to avoid their contractual obligations; we will fully cooperate with the US Attorney in connection with their inquiry.”

"We will not be deterred from enforcing our rights under the merger agreement." Pennington denied allegations that Genesco had defrauded UBS after agreeing to a $1.5bn takeover by The Finish Line.

UBS, The Finish Line's lenders, claimed that Genesco was trying to sell its business "before everyone knew that its financial condition was collapsing.”

Genesco filed a court order in September seeking closure of the takeover, but The Finish Line filed a court order calling for Genesco to provide access to more financial data and personnel before it progresses with the stalled acquisition, which was first announced in June.

Let’s just say it will be amazing if they get to the retail alter next year - Divorce corporate style.

Source: just-style.com