Footstar CEO Replaced After Accounting Probe

Shoe retailer Footstar Inc. said it had replaced its chief executive after an internal investigation uncovered accounting errors and found that management failed to properly communicate with auditors.

West Nyack, N.Y.-based Footstar, which said in mid-November that it would have to restate earnings because it had understated payments to suppliers, said board member Neele Stearns Jr. will serve as chairman and CEO in the interim. It also said it was cooperating with a separate Securities and Exchange Commission inquiry into its financial statements.

Stearns replaces Mickey Robinson, who the company said had left Footstar.