Foot Locker is shuttering its online skate business CCS after years of disappointing results.
CCS is an important industry customer that has struggled since Foot Locker acquired it in 2008 for $102 million in cash.
Foot Locker announced today that in a few months, CCS customers will be directed to Eastbay.com, also owned by Foot Locker. Purchasing, marketing, and distribution of skate product will be consolidated under Eastbay as well.
Foot Locker “remains highly committed to maintaining and growing a competitive skate business,” the company said in a press release.
Shop-eat-surf learned earlier this year from well-placed sources that Foot Locker had been trying to sell CCS in the marketplace.
When Foot Locker bought CCS, it believed CCS would help Foot Locker crack the skate market, and that it could expand CCS to brick-and-mortar stores.
CCS stores were opened, but were not successful and have since closed. The online portion of the business has also underperformed of late, according to Foot Locker earnings calls.
The mammoth and very corporate-oriented Foot Locker, with $6.5 billion in sales in 2013, appears to have struggled with how to incorporate and manage the much smaller CCS business.
