Shoe retailer leaving Madison headquarters
16.04.2008 02:22
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- Source: JS Online
Famous Footwear will leave its Madison headquarters this year for suburban St. Louis to join its parent company, Brown Shoe Co., the shoe retailer announced Thursday. The 270 employees at Famous Footwear's Madison office, 7010 Mineral Point Road, all have been offered jobs in Clayton, Mo., about 8 miles west of St. Louis, and relocation packages to help move there, Famous Footwear President Joe Wood said. Those who choose not to move will be offered severance packages and job placement services. The move is to begin in mid-July and conclude in mid-to-late October, Wood said. About 130 workers at a Famous Footwear distribution center in Sun Prairie are not affected by the move, Brown Shoe spokeswoman Erin Conroy said. In late January, the company denied rumors that a move was imminent as "completely speculative and incorrect." The decision to leave Madison, where Famous Footwear began in 1960, was not made until Thursday, Wood said. Madison employees were informed of the move around 2 p.m. A possible move has been under discussion for the last five years as part of the company's plan to add 500 to 700 employees in the next few years and to capture a larger share of the fashion footwear market, Wood said. To do so, "we need the talent in one place working together face-to-face on a daily basis," he said. The Wisconsin Department of Commerce worked with the city of Madison to put together an incentive package to lure away Brown Shoe's consolidated headquarters, Commerce spokesman Tony Hozeny said. "It was a strong package," he said. "We knew they were seriously considering it." Missouri won HQMissouri, St. Louis County and Clayton provided $43 million in incentives to help fund training and job creation, as well as for redevelopment of the 12-acre headquarters site, Brown Shoe President Diane Sullivan said. Madison Mayor Dave Cieslewicz said he was "very disappointed" by Brown Shoe's decision. "I personally traveled to St. Louis to make the case for Madison, and city staff and I were in frequent communication with the company," he said in a statement. The city learned about the decision Thursday afternoon, mayoral spokesman George Twigg said. Brown Shoe's 130-year history and 650 employees in St. Louis made it a less disruptive move than moving to Madison, Wood said. The move will cost the company $25 million to $30 million, including relocation expenses, severance costs and lease termination costs. In March, Brown Shoe reported sales dipped 10.6% to $571.5 million in fourth quarter 2007 from a year earlier. The quarter ended Feb. 2. Famous Footwear sales over the same quarter dropped 3.2% to $310.7 million. Total sales fell 4.5% to $2.36 billion in fiscal 2007 from a year ago. Earnings dropped 8% to $60.4 million, or $1.37 a share. The Associated Press contributed to this report.
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