Possible CIT failure could benefit Steven Madden: CEO

By Nivedita Bhattacharjee

BANGALORE (Reuters) - Shoe maker Steven Madden Ltd (SHOO.O) sees acquisition opportunities as small retailers face a possible credit squeeze due to bankruptcy fears at lender CIT Group Inc CIT.N, its Chief Executive Ed Rosenfeld told Reuters.

CIT, which lends to hundreds of thousands of small and mid-sized U.S. businesses, said late Wednesday that government bailout talks had ended, a move that could set the stage for a bankruptcy filing.

Steven Madden, which had earlier said it is "looking more seriously at acquisitions," could spend up to $40 million or $50 million although it is chiefly eyeing smaller buys, Rosenfeld said.

The company is also looking at licensing agreements with retailers, boosted by the successful launch of its L.e.i brand at Wal-Mart Stores Inc (WMT.N) in December last year.

"We are looking at opportunities like that and there's one that we are evaluating very seriously and we hope to have another deal certainly by the end of the year," Rosenfeld said.

Steven Madden, whose lines include flagship brand Steve Madden, Madden Girl and Candie's and caters chiefly to twenty-something girls, is also looking to enter newer global markets over the next couple of years, the CEO said.

"The biggest markets that we are not in, that we would like to be in, are probably India, Russia and Brazil."

Even as it looks to expand its reach globally, the company will close underperforming stores to make the chain more profitable, Rosenfeld said.