Delaware
(State
or Other Jurisdiction of
Incorporation)
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1-11681
(Commission
File Number)
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22-3439443
(IRS
Employer Identification No.)
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933
MacArthur Boulevard
Mahwah,
New Jersey
(Address
of Principal Executive Offices)
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07430
(Zip
Code)
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the
impact of any dividends or any other special distributions to shareholders
on the Company’s future cash requirements and liquidity needs, both in
connection with the Company’s operations and all contingencies and
obligations;
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·
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the
plan of dissolution is subject to approval and adoption by the Company’s
shareholders;
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under
a plan of dissolution, the Company’s remaining assets would be disposed
of, known liabilities would be paid or provided for and reserves would be
established for contingent liabilities, with any remaining assets
available for ultimate
distribution;
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uncertainties
exist as to the disposition value of remaining assets as well as the
amount of our liabilities and obligations, and, in connection with the
liquidation plan and subsequent dissolution, there can be no assurance as
to the amount of any cash or other property that may potentially be
distributed to shareholders or the timing of any
distributions;
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there
can be no assurance that issues will not arise in connection with the
obligations, adjustments and payments to occur on the termination of the
Kmart Agreement;
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as
our Kmart business winds down during 2008, we may encounter problems and
other issues that may adversely impact our Kmart Agreement or our other
business obligations or our financial
results;
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we
do not currently expect to generate any material revenues or operating
income following the termination of our Kmart business, although we will
continue to incur significant costs in connection with any of our ongoing
operations and continued corporate existence as well as costs to wind-down
our business;
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the
Company will likely be unable to realize the benefits of our net operating
loss carry forwards;
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the
Company’s ability to manage the anticipated wind-down of its current
businesses in connection with the termination of the Company’s Kmart
business by the end of 2008 (subject to any earlier termination by mutual
agreement of Kmart and the Company or, in certain particular circumstances
provided for in the Kmart Agreement, unilaterally by a party pursuant to
the existing early termination or default terms of the Kmart
Agreement);
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whether
the Company continues to operate the footwear departments in Kmart stores
through December 2008;
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the
Company’s ability to obtain and maintain adequate terms and service with
vendors and service providers and to ensure timely delivery of goods
through December 2008;
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the
effect of making more current certain vendor payable terms effective
February 2008;
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the
ability to maintain contracts that are critical to the Company’s
operations;
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the
Company’s ability to successfully implement and maintain internal controls
and procedures that ensure timely, effective and accurate financial
reporting;
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the
Company’s ability to reduce overhead costs commensurate with any decline
in sales and in connection with the winding down of the Company’s
business;
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the
Company’s ability to manage and plan for the disposal of, closing or
conversion of Kmart stores;
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intense
competition in the markets in which the Company competes;
and
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retention
of employees.
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Footstar, Inc. | ||||
Date:
May 27, 2008
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By:
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/s/ Maureen Richards | ||
Name: | Maureen Richards | |||
Title: |
Senior
Vice President, General Counsel
and
Corporate Secretary
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