US footwear retailer, Footstar, Inc, which last week filed for Chapter 11 bankruptcy protection, has said it plans to close around 165 stores by summer 2004 and refocus on its athletic footwear business.

The West Nyack, New York-based company said the planned closures include all 88 of its Just For Feet stores and 77 of its 429 Footaction outlets.

Dale Hilpert, chairman, president and CEO, said: “We are conducting a thorough review of our operations as we work to develop a long-term business strategy that will form the basis of a Plan of Reorganisation. While this analysis is underway, we determined that it would be in the best interests of the company and its creditors to take immediate action to reduce losses in the company’s Athletic segment.”

He added that Footstar’s Just For Feet business has been unprofitable since its acquisition in 2000, primarily as a result of its high lease costs.

R. Shawn Neville, president and CEO of Footstar’s Athletic segment, said: “Following the closings, Footaction will operate 352 stores with continued strength and focus in major metropolitan markets across the country. With this more focused store base, we will be better able to build upon our leadership position with our core athletic consumers.”

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