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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

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         Date of report (Date of earliest event reported): July 1, 2004


                                 FOOTSTAR, INC.
             (Exact Name of Registrant as Specified in Its Charter)



                                    DELAWARE
                 (State or Other Jurisdiction of Incorporation)

                   1-11681                      22-3439443
          (Commission File Number) (I.R.S. Employer Identification No.)

                1 CROSFIELD AVENUE
              WEST NYACK, NEW YORK                  10994
        (Address of Principal Executive Offices)  (Zip Code)

                                 (845) 727-6500
              (Registrant's Telephone Number, Including Area Code)

                                       N/A
          (Former Name or Former Address, if Changed Since Last Report)

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ITEM 5.    OTHER EVENTS.

           As previously disclosed, on March 2, 2004, Footstar, Inc. (the
"Company") and substantially all of its subsidiaries (collectively, the
"Debtors") filed voluntary petitions under chapter 11 of title 11, United States
Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the
Southern District of New York (the "Court") (Case No. 04-22350 (ASH)). The
Debtors remain in possession of their assets and properties, and continue to
operate their businesses and manage their properties as debtors-in-possession
pursuant to sections 1107(a) and 1108 of the Bankruptcy Code.

           On July 7, 2004 the Company issued a press release, a copy of which
is attached hereto as Exhibit 99.1 and incorporated by reference herein,
announcing its settlement with John Michael Robinson, its former Chairman and
Chief Executive Officer. A copy of the settlement agreement with Mr. Robinson is
attached hereto as Exhibit 99.2 and incorporated by reference herein.

ITEM 7.    FINANCIAL STATEMENTS AND EXHIBITS.

          (c)  Exhibits

              Exhibit No.                     Exhibit
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               99.1            Press release of the Company dated July 7, 2004.

               99.2            Settlement Agreement





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                                   SIGNATURES

           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.

Date:  July 7, 2004
                                        FOOTSTAR, INC.


                                        By:  /s/ Maureen Richards
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                                            Maureen Richards
                                            Senior Vice President, General
                                            Counsel and Corporate Secretary





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                                  EXHIBIT INDEX

         Exhibit No.                Description
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           99.1         Press release of the Company dated July 7, 2004.

           99.2         Settlement Agreement






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