Foot Locker to buy CCS from Delia's for $102 million

Monday, 29 September 2008
Athletic shoe and clothing chain Foot Locker Inc plans to buy Delia's Inc's direct-to-consumer skate-wear business CCS for $102 million, as it seeks to boost its appeal with teenage skateboarders. "We are pleased with the opportunity to significantly strengthen our balance sheet and achieve the valuation afforded to the CCS brand, particularly in this uncertain economic environment," said Robert Bernard, Delias' chief executive.

"The sale will allow us to focus on realizing the synergies and growth potential of our core Delia's and Alloy brands, which, we believe, based upon our stated strategies and objectives, should generate positive earnings before interest, depreciation and amortization in both the fourth quarter of Fiscal 2008 and for the full Fiscal 2009 year. "

The acquisition is expected to close end of November.

CCS is a direct-to-consumer business that sells skateboard shoes, clothes and accessories through catalogs and the Internet.