U.S. Shoe Hires Merrill Lynch to Find Suitor : Puts Any, All Assets on Block to Lift Stock Value

U.S. Shoe Corp., a diversified manufacturer and retailer of shoes, clothing and eye-care products, said Monday that it has retained Merrill Lynch & Co. to explore a possible sale of all or part of the company.

The announcement sent U.S. Shoe’s stock sharply higher. It rose $5.875 to close at $24.50 a share on the New York Stock Exchange.

U.S. Shoe Chairman Philip Barach said the company’s main business lines, footwear and retail eye wear, have a bright future but that their full value is not reflected in its stock’s current market price.

The company said the board authorized hiring Merrill Lynch Capital Markets as financial adviser for strategies to maximize stockholder values, including the possible sale of all or part of the company.

But it added that had received no offers or proposals.

U.S. Shoe earned $3.1 million in the first quarter on sales of $528 million.

Range of Brand Names

Jeffrey Stein, a financial analyst at McDonald & Co. in Cleveland, said the announcement did not come as a surprise: “U.S. Shoe has been gradually restructuring and getting rid of the unproductive assets. By taking this course of action, they have more control over their destiny.”

U.S. Shoe has moved recently to eliminate some operations. It announced in June that it would sell its Winterbrook mail order business and also said it would close its six Front Row stores, a clothing discounter.

U.S. Shoe has a wide range of brand names. Its shoes include Red Cross, Selby and Cobbie Cuddlers. It also manufactures the Calvin Klein, Evan-Picone and Famolare lines of footwear under license.

Its women’s apparel includes August Max, Casual Corner and Career Image, and its optical stores include Eyexam 2000 and Lenscrafters.