After rejecting two attempts by Skechers to buy it out, Heelys has retained Houlihan Lokey to be its financial adviser as it explores its strategic alternatives. Heelys said it was making progress but it was aware of its responsibility to shareholders and wanted to cover all of its options. It has already changed its mind on expanding into apparel and it has been trying to diversify into other types of footwear.

This news came just a day before Heelys announced that its sales and net income for the third quarter both declined. Sales dropped by 52.3 percent to 23.8 million while net earnings plunged by 88.7 percent to $755,000 for the period ended Sept. 30. The gross profit margin increased by 1.4 percentage points to 33.3 percent compared with a year ago, which Lisa Peterson, the chief financial officer, credited to “more full-price selling at our retail partners.”

On the other hand, the American brand of wheeled shoes is investing this Fall in major advertising campaigns in some European countries where it has taken over the distribution in order to build up its brand image. In Germany, the campaign involves commercial spots run on two TV channels and in 35 movie theaters all of the country. In France, its spots are being aired on two national channels and others.