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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 13, 1994
BROWN GROUP, INC.
(Exact name of registrant as specified in its charter)
New York
(State or other jurisdiction of incorporation or organization)
1-2191 43-0197190
(Commission File Number) (IRS Employer Identification Number)
8400 Maryland Avenue
St. Louis, Missouri 63105
(Address of principal executive offices) (Zip Code)
(314) 854-4000
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name, former address and former fiscal year,
if changed since last report)
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Item 5. Other Events
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On January 13, 1994, Brown Group, Inc.'s Board of
Directors approved the following actions to
concentrate the company's business in areas of
proven performance and high growth, consolidate
footwear wholesaling operations, withdraw from
losing retail operations, and sharply reduce
manufacturing capacity, overhead and employment.
The company will:
* Consolidate the Brown Shoe Company and Pagoda
businesses;
* Discontinue the Wohl Shoe Company's Leased Shoe
Department business, and begin a program of
closing more than 100 company-owned Regal and
Connie shoe stores throughout the country;
* Close 5 shoe factories in Missouri and Tennessee;
* Reduce Corporate and Divisional staffing at the
St. Louis, Missouri headquarters by more than 400
positions. Two of the company's headquarters
buildings also will be sold.
These changes will reduce Brown Group's staffing by
5,660 positions or about 20 percent of the company's
employment: 1,700 factory positions will be
eliminated and 410 positions at headquarters will be
phased out. In addition, 3,550 positions will be
eliminated in the specialty stores and leased shoe
departments; most of these jobs in the leased shoe
departments, however, are expected to be shifted to
lessors or other operators. A non-recurring fourth
quarter after tax charge of $50 million will be
taken to provide for the cost of these changes.
The $50 million fourth quarter provision for the
cost of these changes will include a $28 million
charge to 1993 continuing operations, which may more
than offset anticipated earnings for the year. The
balance of the provision will comprise a $22 million
charge to discontinued operations related to the
Wohl Leased Department withdrawal.
The Wohl Leased Department operations which will be
discontinued include the management of shoe
departments in department stores primarily on the
West Coast and in the Midwest. Most of the leases
are cancelable after a period of notice by either
party and the company expects to complete most of
the withdrawal by the end of 1994.
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The factory closings will reduce the number of
shoe factories operated by Brown Shoe from 10 to 5.
Most of the remaining capacity will be directed to
supporting the "quick response" business of the
Naturalizer brand.
The additional staff reductions at Brown Group's
headquarters will be made in activities that serve
the company's Leased Department business and
manufacturing operations; and in Distribution,
Systems, Accounting and other functions that overlap
between Brown Shoe, Pagoda and the Corporate office.
Brown Group also announced that it will undertake a
strategic review of the Cloth World retail fabric
operation to develop a plan to achieve the greatest
value for the corporation from this business.
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report
to be signed on its behalf by the undersigned hereunto duly
authorized.
BROWN GROUP, INC.
(Registrant)
By /s/ H. E. Rich
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H. E. Rich
Executive Vice President and
Chief Financial Officer
Date: January 28, 1994
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