Kmart request for relief from stay to terminate Footstar master agreement denied

By Caroline Salls

Pittsburgh, May 20 - Kmart Corp.'s motion for relief from the automatic stay to terminate its master agreement with Footstar, Inc. was denied Friday by the U.S. Bankruptcy Court for the Southern District of New York.

The automatic stay was terminated for stores in San Diego, Clearwater, Fla., South Bend, Ind., Deland, Fla., Lawnside, N.J., Denver, Noblesville, Ind., Homer Glen, Ill., Putnam, Conn., and Warren, Mich.

The court said the master agreement for these stores will be terminated when they are converted to Sears Essential stores.

Footstar has until July 20 to vacate the stores in Denver, Noblesville, Homer Glen, Putnam and Warren and until Aug. 10 for the stores in San Diego, Clearwater, South Bend, Deland and Lawnside.

Kmart was also ordered to appear Friday at a show-cause hearing following a motion for a stay pending appeal filed by Footstar Thursday.

Footstar asked the court to stay orders granting Kmart relief from the automatic stay that requires Footstar to vacate some Kmart stores.

Footstar said in its motion that it feels it has a good chance to have the automatic stay enforced in its appeal.

The company said the order negatively impacts its business and results in the loss of customers.

Footstar, a West Nyack, N.Y.-based retailer, filed for bankruptcy on March 2, 2004. Its Chapter 11 case number is 04-22350.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.