SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
FARAH INC.
(Name of Issuer)
Common Stock, No Par Value
(Title of Class of Securities)
307387100
(CUSIP Number of Class of Securities)
Wynnefield Partners Small Cap Value, L.P.
One Penn Plaza - Suite 4720
New York, New York 10119
Attention: Mr. Nelson Obus
(Name, Address and Telephone Number of Person Authorized)
to Receive Notices and Communications)
Copy to:
Jesse R. Meer, Esq.
Berlack, Israels & Liberman LLP
120 West 45th Street
New York, New York 10035
(212) 704-0100
December 3, 1997
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a Statement on Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following
box: ( )
Check the following box if a fee is being paid with this Statement: ( )
(Page 1 of 11 Pages)
<PAGE>
SCHEDULE 13D
- -------------------- -------------------
CUSIP No. 307387100 Page 2 of 11 Pages
- -------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: Wynnefield Partners Small Cap Value, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 13-3688497
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC (SEE ITEM 3)
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 353,765
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH --
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 353,765
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
--
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
353,765 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.43%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
(Page 2 of 11 Pages)
<PAGE>
SCHEDULE 13D
- -------------------- -------------------
CUSIP No. 307387100 Page 3 of 11 Pages
- -------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: Wynnefield Small Cap Value Offshore Fund, Ltd.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: Not Applicable
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC (SEE ITEM 3)
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
CAYMAN ISLANDS
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 142,380
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH --
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 142,380
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
--
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
142,380 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.38%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
(Page 3 of 11 Pages)
<PAGE>
SCHEDULE 13D
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CUSIP No. 307387100 Page 4 of 11 Pages
- -------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: Wynnefield Partners Small Cap Value L.P. I
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 13-3953291
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC (SEE ITEM 3)
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 215,755
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH --
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 215,755
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
--
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
215,755 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.09%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
(Page 4 of 11 Pages)
<PAGE>
SCHEDULE 13D
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CUSIP No. 307387100 Page 5 of 11 Pages
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- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: Channell Partnership II L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 13-3953291
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC (SEE ITEM 3)
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 5,000
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH --
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 5,000
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
--
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,000 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
.04%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
(Page 5 of 11 Pages)
<PAGE>
Item 1. Security and Issuer.
This Statement relates to shares of the Common Stock, no par value (the
"Shares"), of Farah Inc., a Texas corporation (the "Issuer"). The principal
executive offices of the Issuer are located at 8889 Gateway West, El Paso, Texas
79925.
Item 2. Identity and Background.
(a), (b), (c) and (f). This Statement is being filed by Wynnefield Partners
Small Cap Value, L.P. (the "Partnership"), Wynnefield Small Cap Value Offshore
Fund, Ltd. (the "Fund"), Wynnefield Partners Small Cap Value, L.P. I (the
"Partnership-I") and Channel Partnership II L.P. ("Channel"). Although the
Partnership, the Fund, Partnership-I and Channel are each separate and
distinctive entities with different beneficial owners (whether designated as
limited partners or stockholders), for the convenience of reporting their
holdings, in this Statement, they are sometimes referred to collectively as the
"Wynnefield Group".
Wynnefield Capital Management, LLC, a New York limited liability company
("WCM"), is the general partner of the Partnership and the Partnership-I, which
are private investment companies organized as limited partnerships under the
laws of the State of Delaware. Nelson Obus, Joshua Landes and Robert Melnick are
the managing members of WCM and the principal executive officers of Wynnefield
Capital, Inc., the investment manager of the Fund, a private investment company
organized under the laws of the Cayman Islands. Mr. Obus is the general partner
of Channel, a private investment company organized as a limited partnership
under New York law. Mr. Obus, Mr. Landes and Mr. Melnick are citizens of the
United States of America.
The business address of Mr. Obus, Mr. Landes, and Mr. Melnick, WCM, and
each of the entities in the Wynnefield Group is One Penn Plaza, Suite 4720, New
York, New York 10119.
(d) and (e). During the last five years, neither Mr. Obus, Mr. Landes, Mr.
Melnick, WCM, nor any of the entities comprising the Wynnefield Group has been
(i) convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) or (ii) 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.
Item 3. Source and Amount of Funds or Other Consideration.
The Wynnefield Group entities purchased their Shares, separately from each
other, for the consideration shown in the following table:
(Page 6 of 11 Pages)
<PAGE>
Name Number of Shares Consideration Paid
---- ---------------- ------------------
Partnership 353,765 $2,198,320.36
Partnership-I 215,755 1,318,652.06
Fund 142,380 811,166.92
Channel 5,000 38,375.00
Such Shares were paid for from the separate working capital of each entity
in the Wynnefield Group, each of which maintains a separate investment fund,
consisting of capital contributions from their respective partners and investors
and capital appreciation derived therefrom for the principal purpose of buying
and selling securities (including financial and money market instruments) and
interests in domestic and foreign securities, including, without limitation,
convertible securities, stock index features contracts, options, puts and calls
on stock and warrants.
Item 4. Purposes of Transaction.
Each member of the Wynnefield Group acquired the Shares reported in Item 5
below for investment purposes. The Wynnefield Group intends to meet with
management and the Issuer's outside, independent directors to discuss the
apparent inability of the Issuer to operate its production facilities
efficiently or to earn acceptable returns despite an impressive customer list.
The Issuer's stockholders, in the opinion of the Wynnefield Group, have suffered
with persistent failures of management to produce profitable results
notwithstanding repeated optimistic statements. Subject to the foregoing, if any
member of the Wynnefield Group determines that the ownership of the Issuer's
securities represents an attractive investment opportunity, it reserves the
right to buy additional Shares with the understanding that neither such
purchases nor the exercise of its rights as a stockholder of the Issuer is
intended as a "control" device with respect to the Issuer.
Except as set forth above, no member of the Wynnefield Group has no present
plans or intentions that would result in or relate to any of the transactions
described in subparagraphs (a) through (j) of Item 4 of Schedule 13D.
Item 5. Interests in Securities of the Issuer.
(a) As of the close of business on the date hereof, the three entities
referred to as the Wynnefield Group beneficially owned a total of 716,900
Shares, the separate ownership of which is set forth in Item 3 of this
Statement. Mr. Obus, Mr. Landes and Mr. Melnick, by virtue of their status as
(Page 7 of 11 Pages)
<PAGE>
managing members of WCM, the general partner of the Partnership and
Partnership-I, and as officers of the Fund's investment manager, and Mr. Obus,
the general partner of Channel, may be deemed to have indirect beneficial
ownership of the Shares owned by the entities comprising the Wynnefield Group.
However, Mr. Obus, Mr. Landes and Mr. Melnick, as stated below, disclaim any
beneficial ownership of such Shares. The Shares owned by the entities comprising
the Wynnefield Group represent approximately 6.95% of the outstanding Shares of
the Issuer, based on the 10,315,264 Shares reported as outstanding on August 3,
1997 in the Issuer's Quarterly Report on Form 10-Q for the fiscal quarter then
ended.
Pursuant to Rule 13d-4 of the General Rules and Regulations under the
Securities and Exchange Act of 1934, as amended (the "Exchange Act"), Mr. Obus,
Mr. Landes and Mr. Melnick disclaim beneficial ownership of any Shares owned by
the three entities comprising the Wynnefield Group and disclaim membership in
the Wynnefield Group with respect to the Shares for purposes of Sections 13(d)
and 13(g) of the Exchange Act or for any other purpose under any other provision
of the Exchange Act or the rules and regulations promulgated thereunder.
(b) Mr. Obus, Mr. Landes and Mr. Melnick, by virtue of their status as the
managing members of WCM, the general partner of the Partnership and
Partnership-I, and as officers of the Fund's investment manager, and Mr. Obus,
as general partner of Channel, have the power to vote or to direct the vote and
the power to dispose and to direct the disposition of the Shares owned by each
of the entities comprising the Wynnefield Group.
(c) The following table shows the Shares owned by each of the entities in
the Wynnefield Group as of September 30, 1997 and their separate purchases of
Shares in the over-the-counter market since September 30, 1997:
The Partnership owned 143,353 Shares as of September 30, 1997 and purchased
the Shares shown below since that date:
Number Price
Name Date of Shares Per Share
---- ---- --------- ---------
Partnership October 3, 1997 6,240 $6.9124
Partnership October 8, 1997 6,400 6.8000
Partnership October 13, 1997 12,000 6.6941
Partnership October 20, 1997 6,000 6.0867
Partnership October 22, 1997 1,440 5.6850
(Page 8 of 11 Pages)
<PAGE>
Number Price
Name Date of Shares Per Share
---- ---- --------- ---------
Partnership October 22, 1997 67,200 5.5500
Partnership November 13, 1997 9,600 5.3000
Partnership November 14, 1997 12,000 5.1550
Partnership December 9, 1997 89,532 5.0500
Partnership I owned 76,047 Shares as of September 30, 1997, and purchased
the Shares shown below since that date:
Number Price
Name Date of Shares Per Share
---- ---- --------- ---------
Partnership I October 3, 1997 3,660 6.9121
Partnership I October 8, 1997 3,600 6.9124
Partnership I October 13, 1997 8,000 6.8000
Partnership I October 20, 1997 4,000 6.4941
Partnership I October 22, 1997 960 5.6850
Partnership I October 22, 1997 44,800 5.5500
Partnership I November 13, 1997 6,400 5.3000
Partnership I November 14, 1997 8,000 5.1850
Partnership I December 9, 1997 59,688 5.0500
The Fund owned 25,000 Shares as of September 30, 1997, and purchased the
Shares shown below since that date:
Number Price
Name Date of Shares Per Share
---- ---- --------- ---------
Fund October 21, 1997 12,700 5.9496
Fund October 22, 1997 28,000 5.5500
Fund November 13, 1997 4,000 5.3000
Fund November 14, 1997 5,000 5.1550
(Page 9 of 11 Pages)
<PAGE>
Number Price
Name Date of Shares Per Share
---- ---- --------- ---------
Fund December 9, 1997 67,680 5.0500
Channel owned 5,000 Shares as of September 30, 1997.
(d) Each of the entities comprising the Wynnefield Group as owners of the
Shares specified in Item 3 of this Statement has the right to receive or the
power to direct the receipt of dividends from, or the proceeds from the sale of,
the Shares specified in item 3 of this Statement, but only from such Shares.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer.
Neither Mr. Obus, Mr. Landes, Mr. Melnick, WCM, nor any of the entities
comprising the Wynnefield Group has any contracts, arrangements, understandings
or relationships (legal or otherwise) with any person with respect to any
securities of the Issuer, including but not limited to any contracts,
arrangements, understandings or relationships concerning the transfer or voting
of such securities, finder's fees, joint ventures, loan or option arrangements,
puts or calls, guarantees of profits, division of profits or losses, or the
giving or withholding of proxies.
Item 7. Material to be Filed as Exhibits.
Not applicable.
(Page 10 of 11 Pages)
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of their knowledge and belief, the
undersigned certify that the information set forth in this Statement is true,
complete and correct.
Dated: December 18, 1997
WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P.
WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. I
By: Wynnefield Capital Management, LLC,
General Partner
By: S/Nelson Obus
-----------------------------------------
Nelson Obus, Managing Member
WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND, LTD.
By: Wynnefield Capital, Inc.
S/Nelson Obus
-----------------------------------------
Nelson Obus, President
CHANNEL PARTNERSHIP II L.P.
By: S/Nelson Obus
-----------------------------------------
Nelson Obus, General Partner
