USA: Footstar Ends Loss-Making Licences, Takes $11m Charge
Value-priced footwear retailer Footstar Inc announced on Monday it would take an $11 million restructuring charge to end two unprofitable licensed footwear relationships operated by its Meldisco unit.
The New York-based company said in a statement it will end the Variety Wholesale Distributors operation shortly and close footwear departments in Steinmart stores before February next year.
It added the charge relates to inventory write-downs, asset impairments and severance costs, while this month's sales are ahead of plan at Meldisco and on target at its athletic division.
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