Footstar outsources logistics to FMI, sells DC

Footstar outsources logistics to FMI, sells DC    As part of a Chapter 11 restructuring, West Nyack, N.Y.-based footwear retailer Footstar Inc. is selling its large distribution center in Mira Loma, Calif., and outsourcing certain warehousing and distribution operations to FMI International, a Carteret, N.J.-based logistics service provider.
   Footstar, which filed to reorganize under Chapter 11 in March, will sell its Mira Loma distribution center to realty company Alere Property Group LLC for about $20 million under a transaction subject to Bankruptcy Court approval.
   Alere Property will, in turn, lease the land and buildings to FMI International, which specializes in logistics for the footwear, apparel and retail industries. FMI will also purchase the materials handling equipment in the Mira Loma facility, and provide warehousing and distribution services to the company’s Meldisco division.
   “This agreement is another step in the repositioning of the company as we develop our plan of reorganization so we can emerge from Chapter 11,” said Dale W. Hilpert, chairman, president and chief executive officer of Footstar.
   FMI said that it has entered into an eight-year contract with Footstar to perform transload, warehousing and distribution services.
   Under the contract, FMI will lease the former Footstar distribution center in Mira Loma for the same duration as its contract with the footwear retailer.
   FMI has agreed to extend employment offers to the Footstar employees in Mira Loma, saying that this will ensure the least amount of interruption in service to Footstar’s customers.
   The facility has the capacity to handle 30 million conveyable cases annually with cross-docking. FMI plans to market the remaining space in the building to other leading footwear and apparel suppliers.