Footstar, discount shoe retailers, has announced that it will end its relationship with both Variety Wholesale Distributors, by the second quarter 2002, and Steinmart stores footwear departments, no later than February 2003. It stipulated that these relationships, operating with its Meldisco division, were proving unprofitable.

Footstar will face restructuring charges of $11 million net (or 54 cents per share) in the second quarter. In June, the company proclaimed that its sales figures were ahead of plan, at Meldisco, and current analysis earnings estimates for the second quarter are 72 cents per share.

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