Footwear retailer Brown Shoe Company Inc is planning to close its distribution centre in Sun Prairie, Wisconsin next year as it tries to realign its business and reduce excess capacity in its network.

The facility will be shuttered in a phased process, which is set to begin in January and conclude in April. During this time, the company said, its workload will be moving to other locations.

"This decision was based on the result of changes in our industry and our continued portfolio realignment efforts, which are focused on shifting resources to our strategic consumer platforms," said Mike Kauffman, senior vice president of global supply chain management.

The company, which operates the Famous Footwear and Naturalizer stores, and markets brands including Dr Scholl's, Sam Edelman, Via Spiga and Etienne Aigner, blamed falling demand for toning footwear and ongoing costs of its SAP information technology system for pushing it to a second quarter loss of $4.6m.

The company also recently sold its AND 1 basketball brand as part of a review of its business instigated by chief executive Diane Sullivan.