However, 593 independent franchise Athlete's Foot stores,totaling an estimated 11.9 million sf of leased space, will stayopen, the company says. Despite a $20-million loan from GMACCommercial Finance LLC, the retailer ran into inventory andstocking problems that triggered the Chapter filing, the companysays. A total 1,047 workers will lose their jobs when the storesclose.

The retailer owes GMAC, its only secured debtor, $14 million,according to the filing. Unsecured creditors New Balance and KSwiss have filed individual claims for $1.4 million. Athlete'sFoot's annual gross sales average $500 million but in the filing,the company lists total assets of $33.6 million and total debt of$39.4 million.

The retailer oversees franchised operations in 45 countries.Robert J. Corliss is president and CEO of Athlete's Foot. Corlissheaded a management group last year that bought the firm from GroupRallye SA, a retail conglomerate based in France. Group Rallyebought 33-year-old Athlete's Foot in 1984.