1011308--3/13/2008--FOOTSTAR

related topics

{condition, economic, financial}

{customer, product, revenue}

{product, market, service}

{competitive, industry, competition}

{personnel, key, retain}

{operation, international, foreign}

{debt, indebtedness, cash}

Anticipated wind-down of our current footwear business by not later than the end of 2008 Our April 30, 2007 declaration and payment of a special cash distribution may impact our future cash requirements and liquidity needs. We may be unable to retain talented personnel. We rely on key vendors and third parties to manufacture, warehouse and distribute our products. We may be unable to adjust to constantly changing fashion trends. We must provide consumers with seasonally appropriate merchandise, making our sales highly dependent on seasonal weather conditions. Declines in our sales will have a magnified impact on profitability because of our fixed costs. We operate in the highly competitive footwear retailing industry. There are risks associated with our importation of products.

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1011308--3/13/2008--FOOTSTAR_INC