<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)*
-----------
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)
July 12, 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 (S)(S)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 (S)(S)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 18 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
325,730
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
335,750
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
1,195,600
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,195,600
- ------------------------------------------------------------------------------
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)
9.39%
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
- ------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
- -------------------- ---------------------
CUSIP NO. 659317101 PAGE 3 OF 18 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;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
30,480
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
90,530
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
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 18 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;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
5,000
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
90,530
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
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 18 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 -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
206,650
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
1,066,500
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,066,500
- ------------------------------------------------------------------------------
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)
8.38%
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
CO
- ------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
- -------------------- ---------------------
CUSIP NO. 659317101 PAGE 6 OF 18 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 -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
64,650
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
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 18 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 -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
142,000
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
142,000
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
142,000
- ------------------------------------------------------------------------------
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)
1.12%
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
- ------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
- -------------------- ---------------------
CUSIP NO. 659317101 PAGE 8 OF 18 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 -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
38,570
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
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 18 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
99,890
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
99,890
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
99,890
- ------------------------------------------------------------------------------
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)
0.78%
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
- ------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
- -------------------- ---------------------
CUSIP NO. 659317101 PAGE 10 OF 18 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 -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
90,530
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
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, Atlas Capital, L.P., and Prime
Acquisition Corporation filed a Statement on Schedule 13D relating to the Common
Stock of The North Face, Inc. on March 25, 1999 and an amendment to such
Statement on April 14, 1999. The undersigned are amending such Statement to
reflect a change in their purpose or plan in connection with its The North Face,
Inc. shareholdings, to reflect the acquisition of an additional 64,300 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.
Page 11 of 18 Pages
<PAGE>
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 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. 99,890 $ 1,288,047.60
Cardinal Investors, L.P. 64,650 $ 873,879.65
Cardinal Partners, L.P. 142,000 $ 1,823,180.41
Cardinal Investment Company, Inc.
Pooled Investment Trust 38,570 $ 500,737.54
Kaiser-Francis Oil Company 156,870 $ 1,938,321.67
Ruth Kaiser Nelson 39,090 $ 482,825.39
Marshall B. Payne 30,480 $ 400,641.23
Prime Acquisition Corporation 90,530 $ 1,099,649.07
Managed Account 202,790 $ 2,492,240.17
Edward W. Rose III 325,730 $ 4,190,359.57
--------- --------------
1,195,600 $15,152,397.30
</TABLE>
Page 12 of 18 Pages
<PAGE>
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.
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 the Issuer entered into a Transaction Agreement (the
"Transaction Agreement") with an affiliate of Leonard Green & Partners, L.P.
("LGP") that provides for a tender offer for all of the Issuer's outstanding
stock (other than shares held by James G. Fifield, President and Chief Executive
Officer) at $17 cash per share and the acquisition of control of the Issuer by
LGP and Mr. Fifield. On March 5, 1999, the Company withdrew its tender offer. In
the filing of its Annual Report on Form 10-K on May 7, 1999, the Issuer
indicated that the Transaction Agreement remained in full force and effect
although LGP had informed the Issuer that it was reevaluating the transactions
contemplated by the Transaction Agreement (the "Transactions"). The Issuer
repeated that disclosure in its Quarterly Report on Form 10-Q that was filed
with the SEC on May 21, 1999. The Reporting Persons have continued to purchase
the North Face Common Stock since the announcement of the Transaction Agreement.
In light of the Issuer's announcement that LGP is reevaluating the
Transactions, the Reporting Persons are exploring a number of alternative
courses of action including seeking to acquire the Issuer. In addition, the
Reporting Persons have engaged in discussions (i) with others regarding their
interest in acquiring the Issuer, and (ii) with other shareholders to exchange
views regarding ways to enhance shareholder value, and plan to continue to do
so.
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 may purchase 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>
Voting
------
Name Number of Shares Power Dispositive Power % Ownership
- ---- ------------------ ----- ----------------- ------------
<S> <C> <C> <C> <C>
Edward W. Rose III 335,750/(1)//(2)//(3)/ shared shared 2.64%
325,730 sole shared 2.56%
534,120/(2)/ no shared 4.20%
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 206,650/(6)/ shared shared 1.62%
859,850/(7)/ no shared 6.76%
CILP 64,650 shared shared 0.51%
CPLP 142,000 shared shared 1.12%
</TABLE>
Page 13 of 18 Pages
<PAGE>
<TABLE>
<CAPTION>
Voting
------
Name Number of Shares Power Dispositive Power % Ownership
- ---- ------------------ ----- ----------------- ------------
<S> <C> <C> <C> <C>
Trust 38,570 shared shared 0.30%
Atlas 99,890 sole shared 0.78%
Prime Acquisition 90,530 shared shared 0.71%
</TABLE>
_____________________________
(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 142,000 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; 99,890
shares owned by Atlas; 156,870 shares owned by Kaiser-Francis Oil Company;
39,090 shares owned by Ruth Kaiser Nelson; 30,480 shares owned by Marshall B.
Payne; 325,730 shares owned by Edward W. Rose III; and 202,790 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
1,195,600. 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 18 Pages
<PAGE>
<TABLE>
<CAPTION>
Date of Amount of Securities Price Per Share
------- -------------------- ---------------
Name Transaction
---- -----------
<S> <C> <C> <C>
Atlas Capital
05/26/99 150 8.71
05/26/99 1,520 8.75
05/27/99 270 8.76
05/27/99 1,140 8.83
05/28/99 340 8.97
06/01/99 150 8.77
06/02/99 230 8.93
06/03/99 750 8.70
06/04/99 300 8.77
Cardinal Partners L.P.
05/26/99 60 8.71
05/26/99 630 8.75
05/27/99 110 8.76
05/27/99 470 8.83
05/28/99 150 8.97
06/01/99 60 8.77
06/02/99 100 8.93
06/03/99 320 8.70
06/04/99 130 8.77
Kaiser-Francis Oil
Company
05/26/99 470 8.71
05/26/99 4,660 8.75
05/27/99 820 8.76
05/27/99 3,500 8.83
05/28/99 1,060 8.97
06/01/99 460 8.77
06/02/99 740 8.93
06/03/99 2,300 8.70
06/04/99 920 8.77
Ruth Kaiser Nelson
05/26/99 120 8.71
05/26/99 1,170 8.75
</TABLE>
Page 15 of 18 Pages
<PAGE>
<TABLE>
<CAPTION>
Date of Amount of Securities Price Per Share
------- -------------------- ---------------
Name Transaction
---- -----------
<S> <C> <C> <C>
05/27/99 200 8.76
05/27/99 880 8.83
05/28/99 270 8.97
06/01/99 120 8.77
06/02/99 190 8.93
06/03/99 580 8.70
06/04/99 230 8.77
Managed Account
05/26/99 560 8.71
05/26/99 5,570 8.75
05/27/99 970 8.76
05/27/99 4,180 8.83
05/28/99 1,260 8.97
06/01/99 550 8.77
06/02/99 880 8.93
06/03/99 2,750 8.70
06/04/99 1,100 8.77
Edward W. Rose III
05/26/99 640 8.71
05/26/99 6,450 8.75
05/27/99 1,130 8.76
05/27/99 4,830 8.83
05/28/99 1,520 8.97
06/01/99 660 8.77
06/02/99 1,060 8.93
06/03/99 3,300 8.70
06/04/99 1,320 8.77
</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.
---------------------------
Page 16 of 18 Pages
<PAGE>
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.
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
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: July 13, 1999
*
-------------------------------------
Edward W. Rose III
*
-------------------------------------
Marshall B. Payne
*
-------------------------------------
Leigh J. Abrams
CARDINAL INVESTMENT COMPANY, INC.
By: *
---------------------------------
Page 17 of 18 Pages
<PAGE>
CARDINAL PARTNERS, L.P.
By: *
------------------------------------
CARDINAL INVESTORS, L.P.
By: *
------------------------------------
CARDINAL INVESTMENT COMPANY, INC.
POOLED INVESTMENT TRUST [As Amended and
Restated as of January 1, 1989]
By: *
------------------------------------
ATLAS CAPITAL, L.P.
By: *
------------------------------------
PRIME ACQUISITION CORPORATION
By: *
------------------------------------
* By: /s/ Debbie Crady
---------------------------
Debbie Crady
Attorney-in-Fact
Page 18 of 18 Pages
