Footwear Insight

4 • Footwear Insight ~ January/February 2021 footwearinsight.com THE FOOTWEAR EYE By Cara Griffin I ndustry organization Footwear Distributors and Retailers of America (FDRA) headed into the new year by adding eight new members to its board of directors. The group of footwear execs joining the board will play a role as FDRA assumes control and aims to reinvigorate the Fashion Footwear Association of New York (FFANY) — a merger between the FDRA and FFANY became official in October. FDRA Chairman Mike Jeppesen congratulated the new members, noting that they will help guide FDRA through its continued transformation. "FDRA is now more vital than ever after taking over FFANY, New York market weeks and as it continues to provide companies with key business data and intelligence," said Jeppesen. "These new board members will enhance our mission in support of our efforts to remake market weeks and work more closely together across categories and channels, reinvigorating the industry in 2021 and beyond." The new members of FDRA's Board are: Brandis Russell, Vice President Global Footwear, Converse; Tanya Golesic, President, Jimmy Choo; Susan Itzkowitz, President, Marc Fisher Footwear; Keli Lerdal, Director Global Sourcing, Target; Tacey Powers, EVP GMM Shoes, Nordstrom; Carrie Rubin, President North America, Pentland; Robert Geller, Chief Revenue Officer, White Mountain; Jim Salzano, President & CEO, Jones & Vining. n By Bob McGee T he San Jose, CA-based Shoe Palace chain has been sold to JD Sports Fashion, the British company which also owns The Finish Line. In December, Shoe Palace was acquired for $325 million cash and a 20 percent stake in JD's wholly-owned U.S. company, Genesis Holdings, with an estimated initial value of $356 million. Under the transaction, $100 million of the purchase price is deferred for payments over the next 12 months. JD Sports paid $558 million for The Finish Line in June 2018. In Shoe Palace, publicly traded JD lands a 167-door chain founded by the Mersho Family in 1993 and currently operated by four brothers. Geographically, more than half of Shoe Palace's doors are in California with the remainder divided among Texas, Nevada, Arizona, Florida, Colorado, New Mexico and Hawaii. In fiscal year 2019, the family-led business generated a pre-tax profit of $52 million from $435 million in revenues. The Mersho Brothers will continue to manage Shoe Palace under JD ownership with plans to jointly share ideas and best practices with the parent starting next year. JD, which opened a flagship store in New York City's Times Square in August, sees Shoe Palace significantly increasing in presence on the U.S. West Coast and strengthening its connection with Hispanic and Latino consumers. "We could not imagine a better way to continue to build on the legacy of our family business," George Mersho, CEO of Shoe Palace said in a statement. "Through this combination with JD and Finish Line in the U.S., we have gained a strong global partner." n FDRA Looks to Reinvigorate FFANY Shoe Palace Gets New Owner TRADE GROUPS ACQUISITION FDRA has added new board members who will play a role as it assumes control of the Fashion Footwear Association of New York. Shoe Palace has gained a global partner with its sale to British-based JD Sports Fashion. "FDRA is now more vital than ever after taking over FFANY, New York market weeks and as it continues to provide companies with key business data and intelligence" Mike Jeppesen, FDRA Chairman

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