Footstar begins trading on NYSE; New $1.6 Billion Footwear Company Resulting from Melville Spinoff.
Footstar is composed of Meldisco, a leading operator of leased footwear departments in approximately 2,500 Kmart and other stores, and Footaction, a 444-unit mall-based, branded athletic footwear chain.
"Today marks the beginning of an exciting new stage in our history," said Mickey Robinson, Chairman and Chief Executive Officer of Footstar. "Meldisco, our strong cash generating unit, and Footaction, our fast-growing branded athletic footwear and apparel chain, have enjoyed strong, successful records as part of Melville. Now, as an independent footwear company, these businesses will benefit from greater focus as we take advantage of new opportunities to increase sales and profits and build value for Footstar shareholders."
All of the common stock of Footstar is being distributed to Melville shareholders of record as of October 2, 1996 at a ratio of 0.2879 shares of Footstar common stock for every one share of Melville common stock held. The official distribution date was October 12, 1996, and certificates for Footstar shares will be mailed tomorrow. Immediately following the distribution, Footstar will have approximately 30.5 million common shares outstanding.
VIDEO/PHOTOS AVAILABLE: Video footage of Footstar officials at the Exchange -- plus B-roll -- will be fed from 2:30-2:45 p.m. and can be accessed through Telstar 401, Transponder 19, NR Loop # 102362 and Waterfront # 1630. Photos will be provided to Associated Press, New York City. Additional photos can be obtained by request.
CONTACT: Kekst and Company
Jim Fingeroth/Roanne Kulakoff/Wendi Kopsick, 212/593-2655