------------------------------
OMB APPROVAL
------------------------------
OMB Number 3235-0104
Expires: September 30, 1998
Estimated average burden
hours per response ....... 0.5
------------------------------
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 3
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
================================================================================
1. Name and Address of Reporting Person
Feinberg Stephen
- --------------------------------------------------------------------------------
(Last) (First) (Middle)
450 Third Avenue, 28th Floor
- --------------------------------------------------------------------------------
(Street)
New York New York 10022
- --------------------------------------------------------------------------------
(City) (State) (Zip)
================================================================================
2. Date of Event Requiring Statement (Month/Day/Year)
7/29/97
================================================================================
3. IRS or Social Security Number of Reporting Person (Voluntary)
================================================================================
4. Issuer Name and Ticker or Trading Symbol
Wherehouse Entertainment, Inc.
================================================================================
5 Relationship of Reporting Person to Issuer
(Check all applicable)
[ ] Director [X**] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
--------------------------------------------------------------------
================================================================================
6. If Amendment, Date of Original (Month/Year)
================================================================================
7. Individual or Joint Group Filing (Check Applicable Line)
X* Form filed by One Reporting Person
__ Form filed by More than One Reporting Person
================================================================================
Table I -- Non-Derivative Securities Beneficially Owned
================================================================================
<TABLE>
<CAPTION>
3. Ownership Form:
2. Amount of Securities Direct (D) or
1. Title of Security Beneficially Owned Indirect (I) 4. Nature of Indirect Beneficial Ownership
(Instr. 4) (Instr. 4) (Instr. 5) (Instr.5)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Common Stock 5,712,558* I* By partnerships and corporations*
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
(Print or Type Responses)
<PAGE>
FORM 3 (continued)
Table II -- Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
================================================================================
<TABLE>
<CAPTION>
5. Owner-
3. Title and Amount of Securities ship
Underlying Derivative Security Form of
2. Date Exercisable (Instr. 4) Derivative
and Expiration Date --------------------------------- 4. Conver- Security:
(Month/Day/Year) Amount sion or Direct 6. Nature of
---------------------- or Exercise (D) or Indirect
Date Expira- Number Price of Indirect Beneficial
1. Title of Security Exer- tion of Derivative (I) Ownership
(Instr. 4) cisable Date Title Shares Security (Instr.5) (Instr. 5)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Tranche A Warrant 2.38 per By partnerships
(right to buy) immed. 1/31/02 Common Stock 39,532* share* I* and corporations*
- ------------------------------------------------------------------------------------------------------------------------------------
Tranche B Warrant 9.00 per By partnerships
(right to buy) immed. 1/31/04 Common Stock 6,862* share* I* and corporations*
- ------------------------------------------------------------------------------------------------------------------------------------
Tranche C Warrant 11.00 per By partnerships
(right to buy) immed. 1/31/04 Common Stock 6,862* share I* and corporations*
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
</TABLE>
Explanation of Responses: *Cerberus Partners, L.P., a Delaware limited
partnership ("Cerberus"), is the record holder of (i) 5,712,558 shares of common
stock (the "Shares") of Wherehouse Entertainment, Inc. (the "Company") and (ii)
39,532 Tranche A Warrants, 6,862 Tranche B Warrants and 6,862 Tranche C Warrants
(collectively, the "Warrants") of the Company. Each of the Warrants entitles the
holder thereof, at its option, to purchase 1 share of common stock of the
Company at the respective exercise price set forth in Table II hereof. Pursuant
to participation agreements entered into with Cerberus, (a) Cerberus
International, Ltd., a corporation organized under the laws of the Bahamas
("International"), is the beneficial owner of (i) 1,293,489 of the Shares and
(ii) 17,280 of the Tranche A Warrants, 3,000 of the Tranche B Warrants and 3,000
of the Tranche C Warrants, (b) Ultra Cerberus Fund, Ltd., a corporation
organized under the laws of the Bahamas ("Ultra"), is the beneficial owner of
(i) 108,965 of the Shares and (ii) 3,927 of the Tranche A Warrants, 682 of the
Tranche B Warrants and 682 of the Tranche C Warrants and (c) various other
private investment funds for which the reporting person exercises investment
control over the securities of the Company owned by them (collectively, the
"Funds") are, in the aggregate, the beneficial owner of (i) 2,923,601 of the
Shares and (ii) 15,707 of the Tranche A Warrants, 2,725 of the Tranche B
Warrants and 2,725 of the Tranche C Warrants. Cerberus is the beneficial owner
of 1,386,503 of the Shares and (ii) 2,618 of the Tranche A Warrants, 455 of the
Tranche B Warrants and 455 of the Tranche C Warrants. The reporting person
possesses voting and investment control over all securities of the Company owned
by Cerberus, International and Ultra.
**The reporting person's interest is limited to the extent of his pecuniary
interest in Cerberus, International, Ultra and the Funds, if any.
/s/Stephen Feinberg July 29, 1997
- --------------------------------------------- -----------------------
**Signature of Reporting Person Date
Intentional misstatements or omissions of facts constitute Federal Criminal
Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient. See Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.
