It may not quite be Enron, but Footstar (NYSE:FTS) has its very own accounting hurricane to contend with. Shares of the shoe seller plunged 20% today after it announced that the results of its 10-month investigation will force the company to reduce reported earnings by $29 million to $32 million (after minority interest and taxes) over the five-and-a-half years from 1997 to June 2002.

The company also announced that its chairman and CEO, Mickey Robinson, has left. Board member Neele E. Stearns Jr. will replace him on an interim basis.

Footstar, which operates the Footaction and Just For Feet shoe stores, sells to department stores through its Meldisco subsidiary. It also sells to Kmart (NASDAQ:KMRT), Federated Department Stores (NYSE:FD), Rite-Aid (NYSE:RAD), and Ames. The company claims 17.4% nationwide market share in the discount footwear market.

Last November, its management identified accounting discrepancies related to accounts payable. On Monday, the company reported that it had understated accounts payable by $35.8 million. It will also add $10.3 million to cost of sales in 2000 attributable to errors regarding the integration of Just for Feet accounts payable and inventory systems.

Footstar cited "significant weaknesses in the Company's internal controls and procedures, computer systems and organizational structure," bad accounting and poor communication as cause for error. To combat those weaknesses, it will create the position of senior vice president of financial reporting to "oversee the Company's accounting and financial reporting functions."

For 2002, Footstar expects to report a loss of $32 million to $34 million, or $1.50 to $1.60 per share. The company also expects to post a similar loss for 2003, while showing an accounting profit in 2004.

Selling shoes is a competitive enough business without shooting yourself in the foot. It's not like we're talking complicated energy trading here. A company like this should be able to put one foot in front of the other, and we should be able to come up with 10 more bad puns, but we'll leave it at this: With over 9,000 other stocks out there, you likely can find a better place for your money.