Leading footwear retailer Footstar Inc has announced it has entered signed a deal with Gordmans Inc to operate licensed footwear departments in all of its existing and future stores from this July.

Gordmans operates 38 department stores and its footwear sections are currently operated by Shoe Pavilion, who will discontinue the operation of Gordmans' footwear departments, when its contract expires at the end of June.

Shoe Pavilion recently reported that net sales from the licensed shoe departments were $14.5 million for its fiscal year ended December 29, 2001.

Footstar chairman and chief executive officer, Mickey Robinson, said: "This partnership with Gordmans marks another step forward in our continuing strategy to expand our licensed footwear business, leveraging our unique position as the nation's largest licensed footwear operator, following on the heels of our recently announced partnership with Federated Department Stores.

"This agreement adds further diversity to our portfolio of licensed footwear departments. We look forward to taking over the successful men's and women's footwear businesses at Gordmans and we will be introducing children's footwear in all stores to better serve Gordmans' customers."

He added that the company's Meldisco division will operate the footwear departments. Earlier this month, Footstar announced that it will run the children's footwear departments in 46 Federated department stores from July.