In April 2012, Footstar was merged into Xstelos Holdings, Inc.[1] Footstar was spun off from the Melville Corporation in 1996 as part of that corporation's reorganization of all of its operating divisions including Marshalls, KB Toys, This End Up, and Linens 'n Things.
Footstar originally consisted of three former Melville divisions: family footwear retailer Thom McAn, athletic shoe retailer FootAction USA, and Meldisco, which operated footwear departments inside department and discount stores, primarily Kmart.
In 2000, Footstar acquired the shoe retailer Just For Feet, which had filed for bankruptcy.
[6] In April 2008, Sears Holdings agreed to obtain Footstar's intellectual property as well, including the Thom McAn brand name.
The acquisition was made through FCB I Acquisition Corp., a wholly owned subsidiary of FCB I Holdings Inc., which was owned 80.5% by Footstar Corporation and 19.5% by an unaffiliated investment holding company.