NJ-based Footstar said Wednesday that it will pay
"nearly" $73M for 102 Just For Feet (JFF) stores and the
rights to the JFF name, according to Ted Pratt of the
BIRMINGHAM NEWS. Footstar officials said that they will
operate the JFF stores "as a stand-alone division, assuring
jobs for many workers in those outlets." But positions at
JFF's AL headquarters, which has been "hit by hundreds of
layoffs recently, are not so certain." Footstar "will
likely retain Just For Feet's rock n' roll retail format in
the stores it's buying" and make only a "few tweaks," such
as selling off JFF's inventory and bringing in new shoes and
clothes. Footstar will pay $69.7M in cash and assume $2.9M
in debt and will acquire 79 JFF superstores and 23 smaller
specialty stores, which will be converted to Footaction
stores. Although Footstar CEO Mickey Robinson said that he
"expects the new stores will boost Footstar's revenues by"
$400M annually, some analysts questioned the transaction.
S&P Equity Group analyst Howard Choe: "The acquisition price
was fairly good, but I have some reservations because the
whole athletic footwear outlook is somewhat weak." The sale
is expected to be finalized by the end of March (BIRMINGHAM
NEWS, 2/17). Footstar spokesperson Wendy Kopsick said that
the company "selected the stores it considered the best and
most profitable." Overall, Footstar declined to buy 176 JFF
stores (FT. WORTH STAR-TELEGRAM, 2/17). In Orlando, Chris
Boyd writes that the deal will help "solidify" Footstar's
position as the second-largest athletic footwear and apparel
retailer in the U.S. (ORLANDO SENTINEL, 2/17).
