Footwear retailer Footstar Inc has hired a new chief executive officer and posted diminished fourth quarter results as the US Securities and Exchange Commission continues its investigation into the company's accounting practices.

The New York state-based company, which is in the process of restating earnings for fiscal 1997 through 2002, has appointed former Foot Locker chief Dale Hilpert to the CEO role.

The company fired former CEO Mickey Robinson in September.

In addition, Footstar has promoted its current chief financial officer Stephen Wilson to the vice-president chief administrative officer post, with no plans to fill the CFO vacancy.

The retailer has also hired financial services provider Credit Suisse First Boston to advise it on potential strategic alternatives, which could include the sale of the company's athletic division.

For the fourth quarter ending January 3, Footstar posted a same-store sales decrease of six per cent and a 10.2 per cent year-on-year decrease in total sales to $508.3 million.