Troubled shoe retailer Footstar Inc is set to close all of its retail stores and exit the athletic footwear business.

The New York-based company, which earlier this month filed for Chapter 11 bankruptcy protection, cited no new supplies from its largest vendor Nike Inc as a factor in the move.

In accordance with past business practices, Nike has not supplied Footstar with any new shipments for more than 75 days.

However, Footstar said the move would allow it to focus on its Meldisco business, which operates more than 2500 footwear sections in Kmart Holdings Corp and Wal-Mart Stores Inc outlets.

The Meldisco business, which operates under the Thom McAn trade name, has struggled since Kmart closed about 600 stores under its own Chapter 11 reorganisation.