Sportswear retail chain The Finish Line announced that it will close up to 150 of its 600 stores. The retailer has also appointed Sam Sato, currently the company’s President, as the new CEO effective Feb. 28, 2016. Sato will succeed Glenn Lyon, who will serve as Executive Chairman through the end of 2016 before transitioning to a non-executive chairman role in 2017.
Finish Line seems to be strongly affected by the rise of athleisure clothing. Due to failures in the company’s new warehouse management system, which was too slow in processing orders, the retailer has seen a decrease of around $32 million in sales for the period ended Nov. 28. The store closures have also caused stock prices for the company to fall during the past 12 months.
Finish Line executives say there is still a demand for athletic shoes and the company hopes that a repaired supply chain will lift the retailer by next quarter, according to a report in the Wall Street Journal.