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Kmart Seeks to Remove Footstar

5/11/2005

White Plains, N.Y., Sears Holdings Corp.’s Kmart has requested that a federal judge allow the company to oust Footstar Corp. from 43 stores that are being renamed as a result of the Sears Roebuck-Kmart combo.

Kmart told the U.S. Bankruptcy Court that Footstar, which has a contract to sell shoes at Kmart, is unable to staff the 43 shoe departments.

This is at least the third request on file from Kmart to break its contract with Footstar, which filed for bankruptcy in 2004.

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