November 05, 2008
Footstar shuts down
According to an article in the NJ Biz Journal, Footstar, Inc. is going to shut down at the end of the month.
Footstar filed a chapter 11 petition in 2004, in the Southern District of New York, and reached some level of fame resulting from that court's 2005 decision allowing the debtor to assume its operational leases with Kmart over Kmart's objection. That decision defined the now somewhat popular "Footstar Test."
The contracts with Kmart run out at the end of of this year, and they will not be renewed. According to the article, Kmart will pay $13 million for Footstar's intellectual property, buy its inventory, and employ some of its employees.
Footstar filed a chapter 11 petition in 2004, in the Southern District of New York, and reached some level of fame resulting from that court's 2005 decision allowing the debtor to assume its operational leases with Kmart over Kmart's objection. That decision defined the now somewhat popular "Footstar Test."
The contracts with Kmart run out at the end of of this year, and they will not be renewed. According to the article, Kmart will pay $13 million for Footstar's intellectual property, buy its inventory, and employ some of its employees.
Labels: footstar
¶ 5:39 PM
