Footstar, Inc. has entered into an agreement to sell its distribution center in Gaffney, SC for approximately $15.1 million. The facility will be acquired by Automated Distribution Systems, L.P., a leading third party distribution and logistics solutions provider. The transaction is subject to certain closing conditions and Bankruptcy Court approval, and is expected to be completed as soon as practicable once Court approval is received following a Court-supervised auction on September 14, 2004.
Footstar wound down its operations at the Gaffney distribution center following the sale of Footstar's athletic footwear business in May 2004. As previously reported on July 22, the Company sold its distribution center 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 reorganization so that we can emerge successfully from Chapter 11 and maximize value for all of our stakeholders.”