Retailer Footstar Inc has sold its distribution centre in Gaffney, South Carolina for $15.1 million to distribution and logistics solutions provider Automated Distribution Systems LP.

The transaction is subject to certain closing conditions and Bankruptcy Court approval.

Footstar wound down its operations at the Gaffney distribution centre following the sale of its athletic footwear business in May 2004.

In July the company sold its distribution centre in Mira Loma, California and is now outsourcing all of its warehousing and distribution to FMI International LLC, a third-party provider of logistics services.

Dale W Hilpert, chairman, president and chief executive officer, said: "The sale of the Gaffney facility is important as we continue repositioning our logistics network and strengthening our operations.

"We look forward to completing the sale of this facility while we continue developing a plan of reorganisation so that we can emerge successfully from Chapter 11 and maximise value for all of our stakeholders."