The Company : Just For Feet, Inc.

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Executive Summary: The company: Just For Feet, Inc., headquartered in Birmingham, Alabama, was a superstore retailer specializing in brand-name athletic and outdoor footwear and also carried a selection of sports related attire. Just For Feet, Inc., was incorporated in 1977 and was listed on the NASDAQ after its IPO in 1994. The management of the Company was very tightly controlled by founder and CEO Harold Ruttenberg, a South African by origin who shifted to USA in 1970s, and oversaw the rapid expansion of the shoe store chain since the first superstore was opened in 1988. It initially started with the concept of “Super Stores” and grew rapidly till the mid-1990s and then, through acquisitions, also entered the space of “Smaller Stores”…show more content…
The ultimate resolution: The Company Just for Feet filed for Chapter 11 Bankruptcy on November 2, 1999 and three former executives, including both Ruttenbergs, pleaded guilty to crimes related to a scheme to overstate earnings by $8 million between the years 1996-98. The five executives of the vendors paid $41.5m to settle lawsuits. These included top companies such as Adidas, Fila, Converse & Logo Athletic. The estate of Harold Ruttenberg agreed to pay $15m along with his son to settle trustee’s lawsuit. Don-Allen Ruttenberg was sentenced to a 20 month prison term after pleading guilty to criminal charges. In all $80 million was recovered by the trustee for Just for Feet 's creditors. Near the end of the year 2004, the Company Just for Feet was closed. SEC imposed penalties on Deloitte and its partners who had done the audit. Company History: General: Just For Feet, Inc., headquartered in Birmingham, Alabama, was a superstore retailer specializing in brand-name athletic and outdoor footwear having around 60 stores in 16 states. It also carried a selection of sports related attire, and was a "category killer," carrying 4,500 styles of athletic shoes compared to the 600 styles stocked by most of Just For Feet 's competitors. The Company’s stores provided a high level of customer service, and boasted of a distinctive combination of entertainment features
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