Footstar, Inc. has completed the sale of its distribution center in Mira Loma, California and the outsourcing of certain warehousing and distribution operations to support the ongoing needs of its Meldisco business. The net proceeds to Footstar in connection with the sale were $27,950,000.
On July 9, 2004, the Company had announced an agreement, subject to Bankruptcy Court approval, to sell the Mira Loma facility to Alere Property Group LLC for approximately $20 million. Alere had planned to lease the land and buildings to FMI International LLC (“FMI”), a leading third-party provider of logistics services to the fashion, footwear and retail industries, which would purchase the materials handling equipment in the Mira Loma facility and provide warehousing and distribution services to the Company's Meldisco division under an eight-year agreement. Following an auction held on Monday, July, 19, 2004, the Court on Tuesday approved the sale of the Mira Loma facility to Thrifty Oil Co., a real estate firm, which emerged as the highest bidder and which will lease the land and buildings to FMI, under the same terms as proposed by Alere. The agreement with FMI was approved by the Court as previously announced and has been consummated as well.
Dale W. Hilpert, Chairman, President and Chief Executive Officer, said, “We are pleased to have completed this transaction and at a significantly higher value than previously announced. We look forward to our partnership with FMI, which has extended employment offers to all associates at the Mira Loma facility, and expect to benefit from the firm's expertise as a leading logistics provider, as we continue to position Footstar for a successful emergence from Chapter 11.”
