Home / Knowledge / News / Fashion / Footwear retailer Footstar gets SEC Wells notice

Footwear retailer Footstar gets SEC Wells notice

Feb '06
Footwear discount retailer Footstar Inc has received a Wells notice from the staff of the Securities and Exchange Commission in connection with the Commission's outstanding enforcement proceedings into the facts and circumstances that gave rise to the company's restatement of financial results from 1997 through 2002, which the company announced on November 13, 2002 and completed in September 2004.

Footstar is continuing to cooperate with the SEC staff in connection with this matter and is in discussions with the staff regarding the possible resolution of this matter.

Following Footstar's disclosure in November 2002 that management had discovered discrepancies in the reporting of the company's accounts payable balances, the SEC began an investigation.

The Wells notice states that the SEC staff, as a result of its investigation, is considering recommending that the SEC bring a civil injunctive action against Footstar for alleged violations of provisions of the Securities Exchange Act of 1934 relating to the maintenance of books, records and internal accounting controls, the establishment of disclosure controls and procedures and the periodic SEC filing requirements as set forth in Sections 10(b), 13(a) and 13(b)(2) of the Exchange Act and in SEC Rules 10b-5, 12b-20, 13a-1 and 13a-13.

Under SEC procedures, a Wells notice indicates that the staff has made a preliminary decision to recommend the SEC authorize the staff to bring a civil or administrative action against the recipient of the notice. A recipient of a Wells notice can respond to the SEC staff before the staff makes a formal recommendation regarding whether the SEC should bring any action.

Footstar Inc is a discount footwear retailer. It operates Meldisco licensed footwear departments nationwide in Kmart and Rite Aid Stores. It also distributes own Thom McAn brand of quality leather footwear through Kmart and Wal-Mart stores.

Footstar Inc

Must ReadView All


Textiles | On 22nd Apr 2021

ECOS urges EC to apply ecodesign principles to textile products

The international NGO Environmental Coalition on Standards (ECOS) has ...

Pic: Salvatore Ferragamo

Apparel/Garments | On 22nd Apr 2021

Salvatore Ferragamo launches new platform to discuss sustainability

Italian luxury goods company Salvatore Ferragamo has launched...

Pic: Lululemon

Apparel/Garments | On 22nd Apr 2021

Canadian retailer Lululemon announces sustainability initiatives

Canada-based Lululemon Athletica has announced 2 new initiatives that ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Increased need for online fitting solutions as retailers shift to...

Textile Industry, Head honchos

Textile Industry
Head honchos

Farmers who produce seeds earn 50 per cent more

Textile Industry, Head honchos

Textile Industry
Head honchos

We are staring at livelihood crisis for weavers

Emmi Berlin,

Emmi Berlin

With the support of the first investors - Finland's Technical Research...

Chendhuran Sundar,

Chendhuran Sundar

It manufactures and retails menswear garments in India under the brand...

Dhirubhai & Arvind Shah,

Dhirubhai & Arvind Shah

It supplies synthetic fabrics to top international brands like M&S,...

Frank Heislitz, Freudenberg

Frank Heislitz

Freudenberg Performance Materials is a leading global manufacturer of...

Suresh Patel, Non Woven Federation of India

Suresh Patel
Non Woven Federation of India

The Non Woven Federation of India (NWFI), representing the regional...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Anjali Bhaskar, Samatvam

Anjali Bhaskar

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Archana Jaju, Label Archana Jaju

Archana Jaju
Label Archana Jaju

<b>Archana Jaju</b>’s Hyderabad-based eponymous label works with artisans...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

April 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search