ACTION JACKSON: FOOTACTION SPUN OFF BY PARENT MELVILLE CORP.

     TX-based FootAction USA will be spun off by parent Melville
Corp. this month into a new public company called FootStar Inc.,
according to Leigh Strope of the FT. WORTH STAR-TELEGRAM.  Soon
after, "rapid expansion" will take place as the retailer will
grow from 440 stores to 550 next year as it signs leases and
assumes 80 locations from the now-defunct Thom McAn chain.
Melville, based in Rye, NY, is spinning off FootAction to
shareholders as part of a restructuring that also includes the
sales of the Marshalls and Kay-Bee Toys chains.  Another Melville
company, Meldisco, which operates shoe departments in Kmarts,
will become part of FootStar.  Money raised in Meldisco deal will
help provide capital for FootAction.  FootAction CEO Ralph Parks
says sales should top $500M by the end of '96, and same-store
sales should increase 15%.  Profit figures were not available
(FT. WORTH STAR-TELEGRAM, 9/10).