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Exhibit 10.33



                         AGREEMENT and GENERAL RELEASE
                         -----------------------------



       This AGREEMENT and GENERAL RELEASE ("Agreement") is entered into by and
between

       Iron Age Corporation and its subsidiaries and affiliates ("Iron Age")

                                 and

                       William J. Taaffe ("Mr. Taaffe")

     WHEREAS, Mr. Taaffe is employed as President and Chief Operating Officer of
Knapp Consumer Brands Division; and

     WHEREAS, the parties have agreed that it is in their mutual best interest
that Mr. Taaffe resign his employment; and

       WHEREAS, Mr. Taaffe and Iron Age wish to resolve all issues arising from
Mr. Taaffe's employment and termination of employment.

       NOW, THEREFORE, in consideration of the mutual covenants contained
herein, and intending to be legally bound thereby, the parties agree as follows:

     1.  This Agreement shall constitute Mr. Taaffe's letter of resignation as
President and Chief Operating Officer effective immediately and from his
employment effective June 30, 1999.

     2. Until June 30, 1999, Mr. Taaffe will be on paid terminal leave of
absence in accordance with the provisions of Exhibit A to this Agreement.
<PAGE>
 
     3. Mr. Taaffe acknowledges that by signing this Agreement and accepting the
benefits of it, that he is giving up forever the right to seek any relief from
Iron Age or any person associated with Iron Age for any event occurring prior to
the execution of this Agreement by all parties. Pursuant to that understanding
and as consideration for the payments set forth in Paragraph 2, Mr. Taaffe
irrevocably and unconditionally releases, remits, acquits, and discharges Iron
Age, its corporate affiliates, its present and former officers, directors,
agents, employees, contractors, successors and assigns (separately and
collectively "Releasees"), jointly and individually, from any and all claims,
known or unknown, which Mr. Taaffe, his heirs or assigns have or may have
against Releasees, and any and all liability which the Releasees may have to
him, whether called claims, demands, causes of action, obligations, damages or
liabilities arising from any and all basis, however called, including but not
limited to claims of breach of contract or discrimination under any federal,
state or local law, rule, or regulation. This Release relates to claims arising
prior to and during Mr. Taaffe's employment by Iron Age, whether those claims
are past or present, whether they arise from common law, contract or statute,
whether they arise from labor laws, discrimination laws, or any other law, rule
or regulation, provided, however, that this Release does not apply to any
employment rights or claims that may arise after this Agreement is executed by
all of the parties. Mr. Taaffe specifically acknowledges that this Release is
applicable to any claim under the Age Discrimination in Employment Act, the
Civil Rights Act of 1964 and the Americans With Disabilities Act. This Release
is for any relief, no matter how called, including but not limited to
reinstatement, wages, back pay, front pay, severance pay, compensatory damages,
punitive damages, damages for pain and suffering, or attorneys' fees. Mr. Taaffe
agrees he will not be entitled to any benefit from any claim or proceeding filed
by him or on his behalf with any agency or court. Mr. Taaffe further agrees that


                                      -2-
<PAGE>
 
he is waiving any right to seek future employment with Iron Age, and if he
should do so, Iron Age will deny employment and such denial shall not be the
basis of any claim whatsoever.

     Mr. Taaffe further agrees that if he should initiate any court action
against Iron Age which is successfully defended by Iron Age, Mr. Taaffe shall
reimburse Iron Age for all costs and attorney fees incurred in defending such
action.

     4. Mr. Taaffe further agrees that he will not seek unemployment
compensation based upon his resignation, and agrees that if Iron Age is required
to submit a separation report, Mr. Taaffe will not contest that his resignation
was without good cause.

     5.  Mr. Taaffe agrees that he will not divulge to anyone any information
regarding Iron Age's records, ideas, plans or any other aspect of Iron Age's
operations and any information obtained by Mr. Taaffe during his employment
shall be deemed confidential.  This obligation of confidentiality shall not
apply to information which prior to any disclosure by Mr. Taaffe has become
publicly available information.

     6. The parties agree that the execution of this Agreement is in compromise
and final settlement between the parties of all disputed matters, whether
asserted or not, constitutes full satisfaction of all claims made or which could
be made, and does not in any way admit liability or wrongdoing by any entity or
individual.

     7. The parties intend this Agreement to be legally binding upon and inure
to the benefit of each of them and their respective heirs, successors and
assigns.

     8. The Parties agree that the terms of this Agreement shall be kept
confidential, except as necessary for the administration or enforcement of this
Agreement.

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<PAGE>
 
     9. This Agreement is the complete agreement between the parties, and there
are no written or oral understandings, promises or agreements directly or
indirectly related to this Agreement that are not incorporated herein in full.

     10. Mr. Taaffe states that he has carefully read the within and foregoing
Agreement, that he has been advised prior to execution of this Agreement to seek
the advice of an attorney, that he knows and understands the contents of this
Agreement, that he has been given adequate time to consider whether to execute
the Agreement, that he executes this Agreement knowingly and voluntarily as his
own free act and deed, and that this Agreement was freely entered into without
fraud, duress or coercion.

     11. Mr. Taaffe acknowledges that he was given at least twenty-one (21) days
in which to consider whether to execute this Agreement before being required to
make a decision. Mr. Taaffe further acknowledges that he may revoke the
Agreement for a period of seven (7) days from the date that he executed the
Agreement.

     12. This Agreement shall be and remain in effect despite any alleged breach
of this Agreement or the discovery or existence of any new or additional fact,
or any fact different from that which Iron Age or Mr. Taaffe now know or believe
to be true. Notwithstanding the foregoing, nothing in this Agreement shall be
construed as or constitute a release of any party's rights to enforce the terms
of this Agreement.

  IN WITNESS WHEREOF, and intending to be legally bound, each of the parties
hereto has caused this Agreement to be executed as of the dates indicated.

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<PAGE>
   
                               IRON AGE CORPORATION


Date:                          By: 
     --------------------         ---------------------------------- 
                                  Chairman and CEO


                                  /s/ William J. Taaffe
Date:                             -------------------------------------
     --------------------         WILLIAM J. TAAFFE

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