<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
-----------
THE NORTH FACE, INC.
--------------------------------------------------
(Name of Issuer)
Common Stock, $0.0025 par value
--------------------------------------------------
(Title of Class of Securities)
659317101
----------------------------------------
(CUSIP Number)
Lawrence B. Goldstein, Gardere & Wynne, L.L.P.
1601 Elm Street, Suite 3000, Dallas, Texas 75201 (214) 999-4564
---------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
April 5, 1999
-------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box [_]
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See SS.SS.240.13d-7(b) for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
<PAGE>
SCHEDULE 13D
- ------------------- --------------------
CUSIP NO. 659317101 PAGE 2 OF 19 PAGES
- ------------------- --------------------
- --------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Edward W. Rose III
- --------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a)[_]
(b)[X]
- --------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
PF; 00
- --------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [_]
- --------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 304,820
SHARES ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 333,720
EACH ------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0
WITH ------------------------------
10 SHARED DISPOSITIVE POWER
1,131,300
- --------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,131,300
-------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
(See Instructions)
- --------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.91%
- --------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
- ---------
<PAGE>
SCHEDULE 13D
- ------------------- ------------------
CUSIP NO. 659317101 PAGE 3 OF 19 PAGES
- ------------------- ------------------
- --------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Marshall B. Payne
- --------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a)[_]
(b)[X]
- --------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
PF
- --------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [_]
- --------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 30,480
SHARES -----------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 90,530
EACH -----------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0
WITH -----------------------------
10 SHARED DISPOSITIVE POWER
121,010
- --------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
121,010
-------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
(See Instructions)
- --------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.95%
- --------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
- --------------------------------------------------------
<PAGE>
SCHEDULE 13D
- -------------------- ------------------
CUSIP NO. 659317101 PAGE 4 OF 19 PAGES
- -------------------- ------------------
- --------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Leigh J. Abrams
- --------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [_]
(b) [X]
- --------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
PF
- --------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [_]
- --------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 5,000
SHARES -----------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 90,530
EACH -----------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0
WITH -----------------------------
10 SHARED DISPOSITIVE POWER
95,530
- --------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
95,530
-------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
(See Instructions)
- --------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.75%
- --------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
- --------------------------------------------------------
<PAGE>
SCHEDULE 13D
- ------------------- ------------------
CUSIP NO. 659317101 PAGE 5 OF 19 PAGES
- ------------------- ------------------
- --------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Cardinal Investment Company, Inc.
- --------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [_]
(b) [X]
- --------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
OO
- --------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [_]
- --------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
- --------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
SHARES -----------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 204,620
EACH -----------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0
WITH -----------------------------
10 SHARED DISPOSITIVE POWER
1,002,200
- --------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,002,200
-------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
(See Instructions)
- --------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.89%
- --------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
CO
- --------------------------------------------------------
<PAGE>
SCHEDULE 13D
- ------------------- ------------------
CUSIP NO. 659317101 PAGE 6 OF 19 PAGES
- ------------------- ------------------
- --------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Cardinal Investors, L.P.
- --------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [_]
(b) [X]
- --------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
- --------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [_]
- --------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
- --------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
SHARES -----------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 64,650
EACH -----------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0
WITH -----------------------------
10 SHARED DISPOSITIVE POWER
64,650
- --------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
64,650
-------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
(See Instructions)
- --------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.51%
- --------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
- --------------------------------------------------------
<PAGE>
SCHEDULE 13D
- ------------------- ------------------
CUSIP NO. 659317101 PAGE 7 OF 19 PAGES
- ------------------- ------------------
- --------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Cardinal Partners, L.P.
- --------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [_]
(b) [X]
- --------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
- --------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [_]
- --------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
- --------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
SHARES -----------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 139,970
EACH -----------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0
WITH -----------------------------
10 SHARED DISPOSITIVE POWER
139,970
- --------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
139,970
-------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
(See Instructions)
- --------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.10%
- --------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
- --------------------------------------------------------
<PAGE>
SCHEDULE 13D
- ------------------- ------------------
CUSIP NO. 659317101 PAGE 8 OF 19 PAGES
- ------------------- ------------------
- --------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Cardinal Investment Company, Inc. Pooled Investment Trust
- --------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [_]
(b) [X]
- --------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
- --------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [_]
- --------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
- --------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
SHARES -----------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 38,570
EACH -----------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0
WITH -----------------------------
10 SHARED DISPOSITIVE POWER
38,570
- --------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
38,570
-------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
(See Instructions)
- --------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.30%
- --------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
OO
- --------------------------------------------------------
<PAGE>
SCHEDULE 13D
- ------------------- ------------------
CUSIP NO. 659317101 PAGE 9 OF 19 PAGES
- ------------------- -----------------
- --------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Atlas Capital, L.P.
- --------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [_]
(b) [X]
- --------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
- --------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [_]
- --------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
- --------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 95,040
SHARES -----------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
EACH -----------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0
WITH -----------------------------
10 SHARED DISPOSITIVE POWER
95,040
- --------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
95,040
-------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
(See Instructions)
- --------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.75%
- --------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
- --------------------------------------------------------
<PAGE>
SCHEDULE 13D
- ------------------- -------------------
CUSIP NO. 659317101 PAGE 10 OF 19 PAGES
- ------------------- --------------------
- --------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Prime Acquisition Corporation
- --------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [_]
(b) [X]
- --------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
- --------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [_]
- --------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
SHARES -----------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 90,530
EACH -----------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0
WITH -----------------------------
10 SHARED DISPOSITIVE POWER
90,530
- --------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
90,530
-------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
(See Instructions)
- --------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.71%
- --------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
CO
- --------------------------------------------------------
<PAGE>
Edward W. Rose III, Marshall B. Payne, Leigh J. Abrams, Cardinal Investment
Company, Inc., Cardinal Investors, L.P., Cardinal Partners, L.P., Cardinal
Investment Company, Inc. Pooled Investment Trust, and Atlas Capital, L.P. filed
a Statement on Schedule 13D relating to the Common Stock of The North Face, Inc.
on March 25, 1999. The undersigned are amending such Statement to reflect the
acquisition of an additional 165,000 shares of Common Stock and certain other
matters.
Item 1. Security and Issuer.
-------------------
This Statement on Schedule 13D (the "Statement") relates to the shares of
Common Stock, $0.0025 par value (the "North Face Common Stock"), of The North
Face, Inc., a Delaware corporation (the "Issuer"), which has its principal
executive offices at 407 Merrill Avenue, Carbondale, Colorado 81623.
Item 2. Identity and Background.
-----------------------
(a) - (c): The following sets forth the information required by Items (a),
(b) and (c):
This statement is being filed collectively by Edward W. Rose III, Marshall
B. Payne, Leigh J. Abrams, Cardinal Investment Company, Inc., a Texas
corporation ("CICI"), Cardinal Investors, L.P., a Texas limited partnership
("CILP"), Cardinal Partners, L.P., a Texas limited partnership ("CPLP"),
Cardinal Investment Company, Inc. Pooled Investment Trust (the "Trust"), Atlas
Capital, L.P., a Texas limited partnership ("Atlas"), and Prime Acquisition
Corporation, a Delaware corporation ("Prime Acquistion") (collectively, the
"Reporting Persons") pursuant to their agreement to the collective filing of
their statement.
CICI is a company engaged in the investment business. The address of its
principal business and office is 500 Crescent Court, Suite 250, Dallas, Texas
75201 (the "Cardinal Address"). Mr. Rose is the sole director of CICI and his
principal occupation is acting as the President of CICI. Mr. Rose's business
address is the Cardinal Address. Mr. Payne's principal occupation is acting as
the Vice President of CICI and his business address is the Cardinal Address.
Debbie Crady is the Chief Financial Officer and Corporate Secretary of CICI. Her
business address is the Cardinal Address.
Leigh J. Abrams is the Chief Executive Officer and President of Drew
Industries Incorporated ("Drew"), a company that supplies a broad array of
components for manufactured homes and recreational vehicles, and LBP, Inc., a
holding company. The business address for Mr. Abrams, Drew Industries
Incorporated and LBP, Inc. is 200 Mamaroneck Avenue, White Plains, New York
10601 (the "Drew/LBP Address").
CILP is a Texas limited partnership engaged in the investment business. The
address of its principal business and office is the Cardinal Address. The
General Partner of CILP is CICI.
CPLP is a Texas limited partnership engaged in the investment business. The
address of its principal business and office is the Cardinal Address. The
General Partner of CPLP is CICI.
Trust is a trust that, pursuant to the Declaration of Trust, invests funds
from the CICI Purchase Pension Plan and the CICI Profit Sharing Plan. The
address of its principal business and office is the Cardinal Address. The
trustee of the Trust is Edward W.
Rose III.
Atlas is a partnership engaged in the investment business. The address of
its principal business and office is the Cardinal Address. The General Partner
of Atlas is Atlas Capital Management, L.P., a Texas limited partnership ("ACM").
The General Partner of ACM is RHA, Inc., a Texas corporation wholly-owned by
Robert Alpert. Robert Alpert is an employee of CICI.
Prime Acquisition is a corporation whose principal business was the
manufacture of building products until the sale of substantially all of its net
assets. Prime Acquisition's present principal business is to use the proceeds
from the sale of the assets of Prime Acquisition to acquire other businesses.
The address of its
Page 11 of 19 Pages
<PAGE>
principal business and office is 200 Mamaroneck Avenue, White Plains, New York
10601. The sole director of Prime Acquisition is Leigh J. Abrams. The executive
officers of Prime Acquisition are Leigh J. Abrams (President and Chief Executive
Officer), Fredric M. Zinn (Chief Financial Officer) and Harvey J. Kaplan
(Secretary and Treasurer). Prime Acquisition is the wholly-owned subsidiary of
LBP, Inc., a holding company ("LBP"). The directors of LBP are Leigh J. Abrams,
Edward W. Rose III, James F. Gero and Marshall B. Payne. The executive officers
of LBP are Leigh J. Abrams (President and Chief Executive Officer), Fredric M.
Zinn (Chief Financial Officer), Harvey J. Kaplan (Secretary and Treasurer) and
Edward W. Rose III (Chairman of the Board). Mr. Gero is the Chairman and Chief
Executive Officer of Sierra Technologies, Inc., a manufacturer of defense system
technologies. Mr. Gero's business address and the address of Sierra
Technologies, Inc. is 247 Cayuga Road, Buffalo, New York 14225. Mr. Zinn is the
Chief Financial Officer of Drew and LBP, Inc. Mr. Zinn's business address is the
Drew/LBP Address. Mr. Kaplan is the Secretary and Treasurer of Drew and LBP,
Inc. Mr. Kaplan's business address is the Drew/LBP Address.
(d) and (e):The following sets forth the information required by Items (d)
and (e):
During the last five years, none of the Reporting Persons, the executive
officers or directors of Prime Acquisition or LBP, Inc., Ms. Crady or Mr. Alpert
(i) has been convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors) or (ii) was a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction, and as a result of such
proceeding, was or is subject to a judgment, decree or final order enjoining
future violations of, or prohibiting or mandating activities subject to, Federal
or State securities laws, or finding any violation with respect to such laws.
(f) Mr. Rose, Mr. Payne, Mr. Abrams, Ms. Crady, Mr. Alpert and the
executive officers and directors of Prime Acquisition and LBP, Inc. are all
citizens of the United States.
Item 3. Source and Amount of Funds or Other Consideration.
-------------------------------------------------
The following table sets forth the aggregate consideration paid for
the North Face Common Stock by each of the persons or entities listed below.
CICI and/or Edward W. Rose III have sole or shared dispositive or voting power
with respect to all of the shares listed below. The table lists the actual
owners of the shares. The Managed Account reflects an account over which CICI
has sole dispositive power.
<TABLE>
<CAPTION>
NAME NUMBER OF SHARES AGGREGATE CONSIDERATION
- ---- ---------------- -----------------------
<S> <C> <C>
Leigh J. Abrams 5,000 $ 62,515.00
Atlas Capital, L.P. 95,040 $ 1,245,427.26
Cardinal Investors, L.P. 64,650 $ 873,879.65
Cardinal Partners, L.P. 139,970 $ 1,805,339.78
Cardinal Investment Company, Inc.
Pooled Investment Trust 38,570 $ 500,737.54
Kaiser-Francis Oil Company 141,940 $ 1,807,113.63
Ruth Kaiser Nelson 35,330 $ 449,780.65
Marshall B. Payne 30,480 $ 400,641.23
Prime Acquisition Corporation 90,530 $ 1,099,649.07
Managed Account 184,970 $ 2,335,636.00
Edward W. Rose III 304,820 $ 4,006,594.12
--------- --------------
1,131,300 $14,587,313.93
</TABLE>
The funds used to acquire the North Face Common Stock came from
available working capital and/or available cash on hand of each of the persons
or entities listed above.
Pages 12 of 19 Pages
<PAGE>
Item 4. Purpose of Transaction.
----------------------
The Reporting Persons have been acquiring North Face Common Stock
since January 22, 1999 to hold primarily for investment. The Issuer announced on
February 28, 1999 that its Board of Directors approved an agreement (the
"Transaction Agreement") covering a recapitalization that would result in the
public shareholders of the Issuer receiving $17.00 cash per share and the
acquisition of control of the Issuer by Leonard Green & Partners, L.P. and James
Fifield. The Reporting Persons have continued to purchase the North Face Common
Stock since the announcement of the Transaction Agreement.
Based on information currently known to the Reporting Persons, (i)
the Reporting Persons are in favor of the consummation of the transactions
contemplated by the Transaction Agreement or another transaction that would
result in the shareholders of the Company receiving in excess of $17.00 per
share, and (ii) plan to encourage the Board of Directors and/or management of
the Issuer to consummate the transactions contemplated by the Transaction
Agreement or another transaction that would result in the shareholders of the
Company receiving in excess of $17.00 per share.
The Reporting Persons are continuously reviewing the status of the
Transaction Agreement, the Issuer's business affairs and financial condition, as
well as all aspects of the Reporting Persons' shareholdings. The Reporting
Persons currently plan to continue to acquire additional shares of North Face
Common Stock if they are able to acquire such shares on terms they consider
favorable; provided, however, they may not purchase any additional shares or
they may sell all or any part of their shareholdings at any time depending on
circumstances existing from time to time.
Item 5. Interest in Securities of the Issuer.
------------------------------------
(a) and (b): The following table sets forth the information required by Item
5(a) and (b):
<TABLE>
<CAPTION>
NAME NUMBER OF SHARES VOTING POWER DISPOSITIVE POWER % OWNERSHIP
- ---- --------------- ----------- ----------------- -----------
<S> <C> <C> <C> <C>
Edward W. Rose III 333,720(1)(2)(3) shared shared 2.63%
304,820 sole shared 2.40%
492,760(2) no shared 3.88%
Marshall B. Payne 30,480 sole shared 0.24%
90,530(4) shared shared 0.71%
Leigh J. Abrams 5,000 sole shared 0.04%
90,530(5) shared shared 0.71%
CICI 204,620(6) shared shared 1.61%
797,580(7) no shared 6.28%
CILP 64,650 shared shared 0.51%
CPLP 139,970 shared shared 1.10%
Trust 38,570 shared shared 0.30%
Atlas 95,040 sole shared 0.75%
Prime Acquisition 90,530 shared shared 0.71%
</TABLE>
Pages 13 of 19 Pages
<PAGE>
- ------------------------------
(1) Includes the shares owned by the Trust.
(2) Includes shares over which CICI has voting and/or dispositive power (and
over which Mr. Rose may be considered to have voting and/or dispositive power by
virtue of being the sole director and the President of CICI).
(3) Includes shares over which Mr. Rose may be considered to have voting
and/or dispositive power by virtue of being a director of LBP, Inc., the parent
company of Prime Acquisition.
(4) Includes shares over which Mr. Payne may be considered to have voting
and/or dispositive power by virtue of being a director of LBP, Inc., the parent
company of Prime Acquisition.
(5) Includes shares over which Mr. Abrams may be considered to have voting
and/or dispositive power by virtue of being a director of LBP, Inc., the parent
company of Prime Acquisition.
(6) Includes 64,650 shares owned by CILP, of which CICI is the general
partner, and 139,970 shares owned by CPLP, of which CICI is the general partner.
(7) Includes the following shares over which CICI has shared
dispositive power with the owner of such shares: 5,000 shares owned by Leigh J.
Abrams; 95,040 shares owned by Atlas; 141,940 shares owned by Kaiser-Francis Oil
Company; 35,330 shares owned by Ruth Kaiser Nelson; 30,480 shares owned by
Marshall B. Payne; 304,820 shares owned by Edward W. Rose III; and 184,970
shares owned by a managed account over which CICI has dispositive power that may
be considered to be shared with Mr. Rose.
The total number of shares beneficially owned by the Reporting
Persons is 1,131,300. Each of Mr. Rose, Mr. Payne, Mr. Abrams, CILP, CPLP,
Trust, Atlas and Prime Acquisition disclaims beneficial ownership of all of the
shares of the North Face Common Stock covered by this Statement, other than the
shares individually owned by him or it. CICI disclaims beneficial ownership of
all of the shares of the North Face Common Stock covered by this Statement,
other than the shares owned by CILP, CPLP, Kaiser-Francis Oil Company and Ruth
Kaiser Nelson.
The following is the applicable information required by Item 2 with
respect to each person with whom the power to vote or to direct the vote or to
dispose or direct the disposition may be shared:
1. Kaiser-Francis Oil Company, a Delaware corporation
("Kaiser-Francis"), is principally engaged in the oil and gas
business. The address of its principal business and its
principal office is P.O. Box 21468, Tulsa, Oklahoma 74121. The
sole director of Kaiser-Francis is George B. Kaiser. The
executive officers of Kaiser-Francis are George B. Kaiser
(President), James A. Willis (Executive Vice President) and D.
Joseph Graham (Vice President and Chief Financial Officer).
The business address for each of such directors and executive
officers is P.O. Box 21468, Tulsa, Oklahoma 74121.
2. Ruth Kaiser Nelson is a private investor and her business address
is P.O. Box 21468, Tulsa, Oklahoma 74121.
To the Reporting Persons' knowledge, none of the above listed persons
or entities (i) has been convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors) or (ii) was a party to a civil proceeding of
a judicial or administrative body of competent jurisdiction, and as a result of
such proceeding, was or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting or mandating activities subject
to, Federal or State securities laws, or finding any violation with respect to
such laws.
(c) The following table sets forth the information required by Item 5(c):
Page 14 of 19 Pages
<PAGE>
<TABLE>
<CAPTION>
DATE OF AMOUNT OF SECURITIES PRICE PER SHARE
------ ------------------- ---------------
NAME TRANSACTION
---- -----------
<S> <C> <C> <C>
ATLAS CAPITAL
04/01/99 220 11.06
04/05/99 3,580 12.06
04/05/99 7,620 11.81
04/05/99 220 11.06
04/06/99 1,800 12.50
04/12/99 450 11.87
04/13/99 900 12.06
KAISER-FRANCIS OIL COMPANY
04/01/99 690 11.06
04/05/99 10,990 12.06
04/05/99 23,340 11.81
04/05/99 690 11.06
04/06/99 5,490 12.50
04/12/99 1,370 11.87
04/13/99 2,750 12.06
RUTH KAISER NELSON
04/01/99 170 11.06
04/05/99 2,760 12.06
04/05/99 5,870 11.81
04/05/99 170 11.06
04/06/99 1,380 12.50
04/12/99 350 11.87
04/13/99 690 12.06
</TABLE>
Page 15 of 19 Pages
<PAGE>
<TABLE>
<CAPTION>
DATE OF AMOUNT OF SECURITIES PRICE PER SHARE
------ ------------------- ---------------
NAME TRANSACTION
---- -----------
<S> <C> <C> <C>
PRIME ACQUISITION CORPORATION
04/01/99 600 11.06
04/05/99 9,550 12.06
04/05/99 20,280 11.81
04/05/99 600 11.06
04/06/99 4,770 12.50
04/12/99 1,190 11.87
04/13/99 2,390 12.06
MANAGED ACCOUNT
04/01/99 820 11.06
04/05/99 13,120 12.06
04/05/99 27,890 11.81
04/05/99 820 11.06
04/06/99 6,560 12.50
04/12/99 1,640 11.87
04/13/99 3,270 12.06
</TABLE>
Each of the above described transactions were open market purchases, and all per
share amounts are net of commissions.
(d) Not applicable.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships With
-------------------------------------------------------------
Respect to Securities of the Issuer.
-----------------------------------
Pursuant to the Partnership Agreements of CILP and CPLP, CICI as
general partner of CILP and CPLP has the right to acquire, transfer and vote any
securities owned by such partnerships including the North Face Common Stock.
Pursuant to the Declaration of Trust, Mr. Rose as trustee of the Trust has the
right to transfer and vote any securities owned by such Trust including the
North Face Common Stock. CICI has agreements with Atlas, Kaiser-Francis Oil
Company, Ruth Kaiser Nelson, the Managed Account, Mr. Payne and Mr. Rose,
pursuant to which CICI has the authority to buy or sell securities on behalf of
each of them without consulting with them. CICI purchased the North Face Common
Stock on behalf of each of them pursuant to such authority. Each of Atlas, CILP,
CPLP, Mr. Payne and Mr. Rose has agreed to pay CICI (which is owned by Mr. Rose)
20% of the profits it or he realizes from the purchase and sale of securities
over which CICI purchases on their behalf or recommends. Each of Kaiser-Francis
Oil Company and Ruth Kaiser Nelson has agreed to pay CICI 15% of the profits it
or she realizes from the sale of securities over which CICI purchases on their
behalf or recommends. The Managed Account has agreed to pay CICI 10% of the
profits it realizes from the sale of securities over which CICI purchases on its
behalf. Mr. Abrams, Trust and Prime Acquisition do not pay any fee to CICI or
Mr. Rose.
Page 16 of 19 Pages
<PAGE>
Item 7. Material to be Filed as Exhibits.
--------------------------------
Exhibit A - Agreement Regarding Filing of Schedule 13D, as amended
*Exhibit B - Cardinal Investors, L.P. Limited Partnership Agreement
*Exhibit C - Cardinal Partners, L.P. Limited Partnership Agreement
*Exhibit D - Cardinal Investment Company, Inc. Pooled Investment
Trust [As Amended and Restated as of January 1, 1989]
- -------------------
* Previously Filed
Signatures
Each of the undersigned hereby appoints Edward W. Rose III, Marshall
B. Payne and Debbie Crady and each of them (with full power to act alone), as
attorneys and agents for the undersigned, with full power of substitution, for
and in the name, place and stead of the undersigned, to sign and file with the
Securities and Exchange Commission under the Securities Exchange Act of 1934 any
and all amendments and exhibits to this Schedule 13D and any and all
applications, instruments and other documents to be filed with the Securities
and Exchange Commission pertaining hereto or thereto, with full power and
authority to do and perform any and all acts and things whatsoever requisite or
desirable.
After reasonable inquiry and to the best of the undersigned's
knowledge and belief, each of the undersigned certifies that the information set
forth in this statement is true, complete and correct .
Dated: April 14, 1999
*
_____________________________________
Edward W. Rose III
*
_____________________________________
Marshall B. Payne
*
_____________________________________
Leigh J. Abrams
CARDINAL INVESTMENT COMPANY, INC.
*
By:__________________________________
*
Name:________________________________
*
Title:_______________________________
Page 17 of 19 Pages
<PAGE>
CARDINAL PARTNERS, L.P.
By: Cardinal Investment Company, Inc., its
General Partner
*
By:_____________________________________
Edward W. Rose III, President
CARDINAL INVESTORS, L.P.
By: Cardinal Investment Company, Inc., its
General Partner
*
By:_____________________________________
Edward W. Rose III, President
CARDINAL INVESTMENT COMPANY, INC.
POOLED INVESTMENT TRUST [As Amended and
Restated as of January 1, 1989]
*
By:__________________________________________
Edward W. Rose III, Trustee
ATLAS CAPITAL, L.P.
By: Atlas Capital Management, L.P., its
General Partner
By: RHA, Inc., its General Partner
*
By:________________________________
Robert Alpert, President
Page 18 0f 19 Pages
<PAGE>
PRIME ACQUISITION CORPORATION
By: /s/ LEIGH J. ABRAMS
-----------------------------------
Leigh J. Abrams, President
* By: /s/ DEBBIE CRADY
----------------------
Debbie Crady
Attorney-in-Fact
Page 19 of 19 Pages
<PAGE>
EXHIBIT A
AGREEMENT REGARDING FILING SCHEDULE 13D
Each of the undersigned hereby agrees that the Schedule 13D to which this
agreement is filed as an exhibit be filed with the Securities and Exchange
Commission on behalf of the parties hereto, and hereby represents to each of the
other parties hereto that he or it is eligible to use Schedule 13D. Each of the
undersigned agrees that he or it is responsible for the timely filing of
Schedule 13D and any amendments thereto, and for the completeness and accuracy
of the information concerning himself or itself contained therein, and that none
of the parites hereto are responsible for the completeness or accuracy of the
information concerning the other parties, unless he or it knows or has reason to
believe that the information concerning the other parties is inaccurate.
April 14, 1999 /s/ EDWARD W. ROSE III
-----------------------------------
Edward W. Rose III
April 14, 1999 /s/ MARSHALL B. PAYNE
-----------------------------------
Marshall B. Payne
April 14, 1999 /s/ LEIGH J. ABRAMS
-----------------------------------
Leigh J. Abrams
April 14, 1999 CARDINAL INVESTMENT COMPANY, INC.
By: /s/ EDWARD W. ROSE III
------------------------------
Name: Edward W. Rose III
------------------------------
Title: President
-----------------------------
April 14, 1999 CARDINAL INVESTORS, L.P.
By: Cardinal Investment Company, Inc.,
its General Partner
By: /s/ EDWARD W. ROSE III
------------------------------
Edward W. Rose III, President
<PAGE>
April 14, 1999 CARDINAL PARTNERS, L.P.
By: Cardinal Investment Company,
Inc., its General Partner
By: /s/ EDWARD W. ROSE III
-------------------------
Edward W. Rose III, President
April 14, 1999 CARDINAL INVESTMENT COMPANY, INC.
POOLED INVESTMENT TRUST
[AS AMENDED AND RESTATED
AS OF JANUARY 1, 1989]
By: /s/ EDWARD W. ROSE III
-------------------------------
Edward W. Rose III, Trustee
April 14, 1999 ATLAS CAPITAL, L.P.
By: Atlas Capital Management, L.P.,
its General Partner
By: RHA, Inc., its General Partner
By: /s/ ROBERT ALPERT
-------------------------
Robert Alpert, President
April 14, 1999 PRIME ACQUISITION CORPORATION
By: /s/ LEIGH J. ABRAMS
-------------------------------
Leigh J. Abrams, President
