News...11/5/04

ASR Europe Cancelled, But ASR Seeks To Attract More Overseas Visitors To San Diego

Following the decision of the European Surf Industry Association to part company with ASR Europe after two shows, ASR has decided to cease for the time being any more European shows, and instead, to concentrate on attracting overseas buyers to its major showcase in San Diego. ASR issued this statement:

"Over the course of its 23-year history, ASR has established a reputation as the premier producer of action sports focused trade shows. ASR Europe launched European professional tradeshow at the beginning of the selling period for summer products. Our team worked diligently to establish a location and time for the show that would unite the market and meet the needs of our industries retailers and manufacturers both large and small.

"However, following our second edition and after further discussion with many in the marketplace, ASR has concluded that it is not feasible at this time to unite the marketplace and hold an effective industry showcase for the action sports market in Europe and therefore will be not producing a show in Europe for 2005.

"The divided timing and geographical needs of the European market left ASR's mission of creating a unified European summer show out of reach. While we strove to provide an exciting window to the industry, we were unable to find a compromise on either a date or location. The European summer holiday continued to be an obstacle for both larger manufacturers and retailers that prefer to work before it and the smaller companies and stores who do business after. Geographically, Chamber d'Amour was well suited for surf-based companies, but lacked strong skate and urban appeal and proved expensive for traveling retailers.

"With its rich surf tradition and status as the European action sports capital, the Basque Coast has been a wonderful host to the first two ASR Europe editions as well as our offices. While ASR recognizes that EuroSIMA is unable to publicly endorse an ASR show outside of Anglet, we appreciate the support of its members to ASR Europe. Also, we thank the skate, urban and other youth culture brands that made a trip to the beach, took a chance and helped to unite the action sports industry in Europe for the past two years.

"This past September, ASR USA in San Diego saw a 10% larger show then in 2003 in what many attendees called the strongest Action Sports show in years. While
ASR Europe is not continuing on its original path, we have increased our knowledge of the European action sports marketplace and will apply that knowledge to better service our European customers as they make the trip to our US shows. ASR's investment and accumulated European knowledge leaves the door open for us to consider launching European shows again in the future. We are considering new possibilities and will keep you posted on our progress."

Meldisco Not Properly Staffing Kmart Shoe Departments, Suit Charges

There's more to the Kmart-Footstar suit than a difference of opinion over money. Kmart has asserted the bankrupt Footstar has understaffed the leased footwear departments Meldisco operates. "It appears that Footstar has routinely permitted Kmart footwear departments to remain completely unstaffed by Footstar employees for many thousands of hours, leaving Kmart with no choice but to direct Kmart employees to neglect their assigned departments in order to cover the footwear departments," it was charged in the lawsuit.

CL King downgraded Wolverine World Wide to neutral from strong buy.