UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. )(1)
HILLS STORES COMPANY
- --------------------------------------------------------------------------------
(Name of issuer)
Common Stock, par value $.01 per share
- --------------------------------------------------------------------------------
(Title of class of securities)
431692102
------------------------------------------------------------
(CUSIP number)
Judy K. Mencher, Esq.
DDJ Capital Management, LLC
141 Linden Street, Suite 4
Wellesley, MA 02181
- --------------------------------------------------------------------------------
(Name, address and telephone number of person authorized to receive
notices and communications)
August 15, 1996
- --------------------------------------------------------------------------------
(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 which is the subject of this 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 the statement. [X] (A fee is
not required only if the reporting person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
Note: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) for other parties to whom copies are to
be sent.
(Continued on following pages)
(Page 1 of 13 Pages)
- ------------------
[1] 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 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 Nos. 431692102 | | Page 2 of 16 Pages |
|-----------------------| |--------------------------|
|----------------------------------------------------------------------------|
| | |
| 1 | NAME OF REPORTING PERSON |
| | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON |
| | |
| | DDJ Capital Management, LLC |
| | 04-3300754 |
|---------|------------------------------------------------------------------|
| | |
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]|
| | SEE ITEM #5 (b) [ ]|
|---------|------------------------------------------------------------------|
| | |
| 3 | SEC USE ONLY |
| | |
|---------|------------------------------------------------------------------|
| | |
| 4 | SOURCE OF FUNDS* |
| | WC |
| | |
|---------|------------------------------------------------------------------|
| | |
| 5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED |
| | PURSUANT TO ITEMS 2(d) or 2(e) [ ] |
|---------|------------------------------------------------------------------|
| | |
| 6 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | COMMONWEALTH OF MASSACHUSETTS |
| | |
|----------------|-----|-----------------------------------------------------|
| | | |
| NUMBER OF | 7 | SOLE VOTING POWER |
| | | |
| SHARES | | 761,634 |
| |-----|-----------------------------------------------------|
| BENEFICIALLY | | |
| | 8 | SHARED VOTING POWER |
| OWNED BY EACH | | |
| |-----|-----------------------------------------------------|
| REPORTING | | |
| | 9 | SOLE DISPOSITIVE POWER |
| PERSON | | |
| | | 761,634 |
| WITH |-----|-----------------------------------------------------|
| | | |
| | 10 | SHARED DISPOSITIVE POWER |
| | | |
|----------------------------------------------------------------------------|
| | |
| 11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 761,634 |
| | |
|---------|------------------------------------------------------------------|
| | |
| 12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) |
| | EXCLUDES CERTAIN SHARES* [ ] |
| | |
|---------|------------------------------------------------------------------|
| | |
| 13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
| | |
| | 7.47% |
|---------|------------------------------------------------------------------|
| | |
| 14 | TYPE OF REPORTING PERSON * |
| | |
| | 00 |
|----------------------------------------------------------------------------|
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
|-----------------------| |--------------------------|
|CUSIP Nos. 431692102 | | Page 3 of 16 Pages |
|-----------------------| |--------------------------|
|----------------------------------------------------------------------------|
| | |
| 1 | NAME OF REPORTING PERSON |
| | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON |
| | |
| | DDJ Overseas Corp. |
| | 98-0151108 |
|---------|------------------------------------------------------------------|
| | |
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]|
| | SEE ITEM #5 (b) [ ]|
|---------|------------------------------------------------------------------|
| | |
| 3 | SEC USE ONLY |
| | |
|---------|------------------------------------------------------------------|
| | |
| 4 | SOURCE OF FUNDS* |
| | WC |
| | |
|---------|------------------------------------------------------------------|
| | |
| 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 | | 564,425 |
| |-----|-----------------------------------------------------|
| BENEFICIALLY | | |
| | 8 | SHARED VOTING POWER |
| OWNED BY EACH | | |
| |-----|-----------------------------------------------------|
| REPORTING | | |
| | 9 | SOLE DISPOSITIVE POWER |
| PERSON | | |
| | | 564,425 |
| WITH |-----|-----------------------------------------------------|
| | | |
| | 10 | SHARED DISPOSITIVE POWER |
| | | |
|----------------------------------------------------------------------------|
| | |
| 11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 564,425 |
| | |
|---------|------------------------------------------------------------------|
| | |
| 12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) |
| | EXCLUDES CERTAIN SHARES* [ ] |
| | |
|---------|------------------------------------------------------------------|
| | |
| 13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
| | |
| | 5.54% |
|---------|------------------------------------------------------------------|
| | |
| 14 | TYPE OF REPORTING PERSON * |
| | |
| | CO |
|----------------------------------------------------------------------------|
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
|-----------------------| |--------------------------|
|CUSIP Nos. 431692102 | | Page 4 of 16 Pages |
|-----------------------| |--------------------------|
|----------------------------------------------------------------------------|
| | |
| 1 | NAME OF REPORTING PERSON |
| | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON |
| | |
| | The Galileo Fund, L.P. |
| | 04-3258283 |
|---------|------------------------------------------------------------------|
| | |
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]|
| | SEE ITEM #5 (b) [ ]|
|---------|------------------------------------------------------------------|
| | |
| 3 | SEC USE ONLY |
| | |
|---------|------------------------------------------------------------------|
| | |
| 4 | SOURCE OF FUNDS* |
| | WC |
| | |
|---------|------------------------------------------------------------------|
| | |
| 5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED |
| | PURSUANT TO ITEMS 2(d) or 2(e) [ ] |
|---------|------------------------------------------------------------------|
| | |
| 6 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | COMMONWEALTH OF MASSACHUSETTS |
| | |
|----------------|-----|-----------------------------------------------------|
| | | |
| NUMBER OF | 7 | SOLE VOTING POWER |
| | | |
| SHARES | | 10,300 |
| |-----|-----------------------------------------------------|
| BENEFICIALLY | | |
| | 8 | SHARED VOTING POWER |
| OWNED BY EACH | | |
| |-----|-----------------------------------------------------|
| REPORTING | | |
| | 9 | SOLE DISPOSITIVE POWER |
| PERSON | | |
| | | 10,300 |
| WITH |-----|-----------------------------------------------------|
| | | |
| | 10 | SHARED DISPOSITIVE POWER |
| | | |
|----------------------------------------------------------------------------|
| | |
| 11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 10,300 |
| | |
|---------|------------------------------------------------------------------|
| | |
| 12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) |
| | EXCLUDES CERTAIN SHARES* [ ] |
| | |
|---------|------------------------------------------------------------------|
| | |
| 13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
| | |
| | .10% |
|---------|------------------------------------------------------------------|
| | |
| 14 | TYPE OF REPORTING PERSON * |
| | |
| | PN |
|----------------------------------------------------------------------------|
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
|-----------------------| |--------------------------|
|CUSIP Nos. 431692102 | | Page 5 of 16 Pages |
|-----------------------| |--------------------------|
|----------------------------------------------------------------------------|
| | |
| 1 | NAME OF REPORTING PERSON |
| | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON |
| | |
| | DDJ Galileo, LLC |
| | 04-3304422 |
|---------|------------------------------------------------------------------|
| | |
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]|
| | SEE ITEM #5 (b) [ ]|
|---------|------------------------------------------------------------------|
| | |
| 3 | SEC USE ONLY |
| | |
|---------|------------------------------------------------------------------|
| | |
| 4 | SOURCE OF FUNDS* |
| | WC |
| | |
|---------|------------------------------------------------------------------|
| | |
| 5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED |
| | PURSUANT TO ITEMS 2(d) or 2(e) [ ] |
|---------|------------------------------------------------------------------|
| | |
| 6 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | COMMONWEALTH OF MASSACHUSETTS |
| | |
|----------------|-----|-----------------------------------------------------|
| | | |
| NUMBER OF | 7 | SOLE VOTING POWER |
| | | |
| SHARES | | 574,725 |
| |-----|-----------------------------------------------------|
| BENEFICIALLY | | |
| | 8 | SHARED VOTING POWER |
| OWNED BY EACH | | |
| |-----|-----------------------------------------------------|
| REPORTING | | |
| | 9 | SOLE DISPOSITIVE POWER |
| PERSON | | |
| | | 574,725 |
| WITH |-----|-----------------------------------------------------|
| | | |
| | 10 | SHARED DISPOSITIVE POWER |
| | | |
|----------------------------------------------------------------------------|
| | |
| 11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 574,725 |
| | |
|---------|------------------------------------------------------------------|
| | |
| 12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) |
| | EXCLUDES CERTAIN SHARES* [ ] |
| | |
|---------|------------------------------------------------------------------|
| | |
| 13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
| | |
| | 5.64% |
|---------|------------------------------------------------------------------|
| | |
| 14 | TYPE OF REPORTING PERSON * |
| | |
| | 00 |
|----------------------------------------------------------------------------|
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
|-----------------------| |--------------------------|
|CUSIP Nos. 431692102 | | Page 6 of 16 Pages |
|-----------------------| |--------------------------|
|----------------------------------------------------------------------------|
| | |
| 1 | NAME OF REPORTING PERSON |
| | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON |
| | |
| | DDJ Galileo Management, LLC |
| | 04-3304416 |
|---------|------------------------------------------------------------------|
| | |
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]|
| | SEE ITEM #5 (b) [ ]|
|---------|------------------------------------------------------------------|
| | |
| 3 | SEC USE ONLY |
| | |
|---------|------------------------------------------------------------------|
| | |
| 4 | SOURCE OF FUNDS* |
| | WC |
| | |
|---------|------------------------------------------------------------------|
| | |
| 5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED |
| | PURSUANT TO ITEMS 2(d) or 2(e) [ ] |
|---------|------------------------------------------------------------------|
| | |
| 6 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | COMMONWEALTH OF MASSACHUSETTS |
| | |
|----------------|-----|-----------------------------------------------------|
| | | |
| NUMBER OF | 7 | SOLE VOTING POWER |
| | | |
| SHARES | | 574,725 |
| |-----|-----------------------------------------------------|
| BENEFICIALLY | | |
| | 8 | SHARED VOTING POWER |
| OWNED BY EACH | | |
| |-----|-----------------------------------------------------|
| REPORTING | | |
| | 9 | SOLE DISPOSITIVE POWER |
| PERSON | | |
| | | 574,725 |
| WITH |-----|-----------------------------------------------------|
| | | |
| | 10 | SHARED DISPOSITIVE POWER |
| | | |
|----------------------------------------------------------------------------|
| | |
| 11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 574,725 |
| | |
|---------|------------------------------------------------------------------|
| | |
| 12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) |
| | EXCLUDES CERTAIN SHARES* [ ] |
| | |
|---------|------------------------------------------------------------------|
| | |
| 13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
| | |
| | 5.64% |
|---------|------------------------------------------------------------------|
| | |
| 14 | TYPE OF REPORTING PERSON * |
| | |
| | 00 |
|----------------------------------------------------------------------------|
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
|-----------------------| |--------------------------|
|CUSIP Nos. 431692102 | | Page 7 of 16 Pages |
|-----------------------| |--------------------------|
|----------------------------------------------------------------------------|
| | |
| 1 | NAME OF REPORTING PERSON |
| | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON |
| | |
| | The Copernicus Fund, L.P. |
| | 04-3193825 |
|---------|------------------------------------------------------------------|
| | |
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]|
| | SEE ITEM #5 (b) [ ]|
|---------|------------------------------------------------------------------|
| | |
| 3 | SEC USE ONLY |
| | |
|---------|------------------------------------------------------------------|
| | |
| 4 | SOURCE OF FUNDS* |
| | WC |
| | |
|---------|------------------------------------------------------------------|
| | |
| 5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED |
| | PURSUANT TO ITEMS 2(d) or 2(e) [ ] |
|---------|------------------------------------------------------------------|
| | |
| 6 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | COMMONWEALTH OF MASSACHUSETTS |
| | |
|----------------|-----|-----------------------------------------------------|
| | | |
| NUMBER OF | 7 | SOLE VOTING POWER |
| | | |
| SHARES | | 186,909 |
| |-----|-----------------------------------------------------|
| BENEFICIALLY | | |
| | 8 | SHARED VOTING POWER |
| OWNED BY EACH | | |
| |-----|-----------------------------------------------------|
| REPORTING | | |
| | 9 | SOLE DISPOSITIVE POWER |
| PERSON | | |
| | | 186,909 |
| WITH |-----|-----------------------------------------------------|
| | | |
| | 10 | SHARED DISPOSITIVE POWER |
| | | |
|----------------------------------------------------------------------------|
| | |
| 11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 186,909 |
| | |
|---------|------------------------------------------------------------------|
| | |
| 12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) |
| | EXCLUDES CERTAIN SHARES* [ ] |
| | |
|---------|------------------------------------------------------------------|
| | |
| 13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
| | |
| | 1.83% |
|---------|------------------------------------------------------------------|
| | |
| 14 | TYPE OF REPORTING PERSON * |
| | |
| | PN |
|----------------------------------------------------------------------------|
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
|-----------------------| |--------------------------|
|CUSIP Nos. 431692102 | | Page 8 of 16 Pages |
|-----------------------| |--------------------------|
|----------------------------------------------------------------------------|
| | |
| 1 | NAME OF REPORTING PERSON |
| | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON |
| | |
| | DDJ Copernicus, LLC |
| | 04-3304417 |
|---------|------------------------------------------------------------------|
| | |
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]|
| | SEE ITEM #5 (b) [ ]|
|---------|------------------------------------------------------------------|
| | |
| 3 | SEC USE ONLY |
| | |
|---------|------------------------------------------------------------------|
| | |
| 4 | SOURCE OF FUNDS* |
| | WC |
| | |
|---------|------------------------------------------------------------------|
| | |
| 5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED |
| | PURSUANT TO ITEMS 2(d) or 2(e) [ ] |
|---------|------------------------------------------------------------------|
| | |
| 6 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | COMMONWEALTH OF MASSACHUSETTS |
| | |
|----------------|-----|-----------------------------------------------------|
| | | |
| NUMBER OF | 7 | SOLE VOTING POWER |
| | | |
| SHARES | | 186,909 |
| |-----|-----------------------------------------------------|
| BENEFICIALLY | | |
| | 8 | SHARED VOTING POWER |
| OWNED BY EACH | | |
| |-----|-----------------------------------------------------|
| REPORTING | | |
| | 9 | SOLE DISPOSITIVE POWER |
| PERSON | | |
| | | 186,909 |
| WITH |-----|-----------------------------------------------------|
| | | |
| | 10 | SHARED DISPOSITIVE POWER |
| | | |
|----------------------------------------------------------------------------|
| | |
| 11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 186,909 |
| | |
|---------|------------------------------------------------------------------|
| | |
| 12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) |
| | EXCLUDES CERTAIN SHARES* [ ] |
| | |
|---------|------------------------------------------------------------------|
| | |
| 13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
| | |
| | 1.83% |
|---------|------------------------------------------------------------------|
| | |
| 14 | TYPE OF REPORTING PERSON * |
| | |
| | 00 |
|----------------------------------------------------------------------------|
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
|-----------------------| |--------------------------|
|CUSIP Nos. 431692102 | | Page 9 of 16 Pages |
|-----------------------| |--------------------------|
|----------------------------------------------------------------------------|
| | |
| 1 | NAME OF REPORTING PERSON |
| | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON |
| | |
| | DDJ Copernicus Management, LLC |
| | 04-3304419 |
|---------|------------------------------------------------------------------|
| | |
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]|
| | SEE ITEM #5 (b) [ ]|
|---------|------------------------------------------------------------------|
| | |
| 3 | SEC USE ONLY |
| | |
|---------|------------------------------------------------------------------|
| | |
| 4 | SOURCE OF FUNDS* |
| | WC |
| | |
|---------|------------------------------------------------------------------|
| | |
| 5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED |
| | PURSUANT TO ITEMS 2(d) or 2(e) [ ] |
|---------|------------------------------------------------------------------|
| | |
| 6 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | COMMONWEALTH OF MASSACHUSETTS |
| | |
|----------------|-----|-----------------------------------------------------|
| | | |
| NUMBER OF | 7 | SOLE VOTING POWER |
| | | |
| SHARES | | 186,909 |
| |-----|-----------------------------------------------------|
| BENEFICIALLY | | |
| | 8 | SHARED VOTING POWER |
| OWNED BY EACH | | |
| |-----|-----------------------------------------------------|
| REPORTING | | |
| | 9 | SOLE DISPOSITIVE POWER |
| PERSON | | |
| | | 186,909 |
| WITH |-----|-----------------------------------------------------|
| | | |
| | 10 | SHARED DISPOSITIVE POWER |
| | | |
|----------------------------------------------------------------------------|
| | |
| 11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 186,909 |
| | |
|---------|------------------------------------------------------------------|
| | |
| 12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) |
| | EXCLUDES CERTAIN SHARES* [ ] |
| | |
|---------|------------------------------------------------------------------|
| | |
| 13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
| | |
| | 1.83% |
|---------|------------------------------------------------------------------|
| | |
| 14 | TYPE OF REPORTING PERSON * |
| | |
| | 00 |
|----------------------------------------------------------------------------|
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
Schedule 13D
- --------------------------------------------------------------------------------
CUSIP NO. 431692102 Page lO of 16 Pages
- --------------------------------------------------------------------------------
Item 1. Security and Issuer:
This statement relates to shares of the common stock, par value of $.Ol per
share, (the "Shares") of Hills Stores Company, a Delaware Corporation, (the
"Company"). The principal executive offices of the Company are located at 15 Dan
Road, Canton, Massachusetts 02021.
Item 2. Identity and Background:
This statement is being filed jointly by DDJ Capital Management, LLC
("DDJ"), a Massachusetts limited liability company, DDJ Overseas Corp., a Cayman
Islands corporation, The Galileo Fund, L.P., a Massachusetts limited
partnership, DDJ Galileo, LLC, a Massachusetts limited liability company, DDJ
Galileo Management, LLC, a Massachusetts limited liability company, The
Copernicus Fund, L.P., a Massachusetts limited partnership, DDJ Copernicus, LLC,
a Massachusetts limited liability company, and DDJ Copernicus Management, LLC, a
Massachusetts limited liability company. Each of the aforementioned entities
shall be collectively referred to as the "DDJ Affiliates". DDJ Copernicus, LLC
is the general partner of, and DDJ Copernicus Management, LLC is the investment
manager for, The Copernicus Fund, L.P. DDJ Galileo, LLC owns all of the voting
securities of, and DDJ Galileo Management, LLC is the investment manager for,
DDJ Overseas Corp. DDJ Galileo, LLC is the general partner of, and DDJ Galileo
Management, LLC is the investment manager for, The Galileo Fund, L.P. DDJ
provides administrative services to the DDJ Affiliates. The Copernicus Fund,
L.P., The Galileo Fund, L.P. and DDJ Overseas Corp. shall hereinafter be
referred to collectively as (the "Funds"). The principal office of each of DDJ
and the DDJ Affiliates, with the exception of DDJ Overseas Corp., are located at
141 Linden Street, Suite 4, Wellesley, Massachusetts 02181. The principal office
of DDJ Overseas Corp. is: c/o Goldman Sachs (Cayman), Harbor Center, George
Town, Post Office Box 896, Grand Cayman Islands.
The name, residence, or business address, principal occupation or
employment and citizenship of each of the executive officers and members of DDJ
and each of the DDJ Affiliates are set forth on Schedule A hereto.
Within the past five years, none of the persons named in this Item 2 or
listed on Schedule A has been convicted in any criminal proceeding (excluding
traffic violations or similar misdemeanors) or has been a party to any civil
proceeding and as a result thereof was or is subject to any judgment, decree or
final order enjoining future violations of, or
<PAGE>
Schedule 13D
- --------------------------------------------------------------------------------
CUSIP NO. 431692102 Page l1 of 16 Pages
- --------------------------------------------------------------------------------
prohibiting or mandating activities subject to federal or state securities laws
or finding any violations with respect to such laws.
The shares to which this statement relates are owned directly by one, two or
all of the Funds.
Item 3. Sources and Amount of Funds or Other Consideration:
The Funds purchased an aggregate of 761,634 Shares for cash in the amount
of approximately $7,624,459.29. All of the 186,909 Shares owned by Copernicus
and all of the 564,425 Shares owned by DDJ Overseas Corp. were purchased for
cash or on margin pursuant to a typical customer margin agreement with Goldman
Sachs & Co. All of the 10,300 Shares owned by The Galileo Fund, L.P. were
purchased for cash. The attached Schedule B sets forth Shares purchased and/or
sold by the Funds since June 16, 1996.
Item 4. Purpose of Transaction:
The Shares were purchased in order to acquire an equity interest in the
Company in pursuit of specified investment objectives established by the
investors in the Funds. DDJ and the DDJ Affiliates may continue to have the
Funds purchase Shares subject to a number of factors, including, among others,
the availability of Shares for sale at what they consider to be reasonable
prices and other investment opportunities that may be available to the Funds.
DDJ and the DDJ Affiliates intend to review continuously the equity
position of the Funds in the Company. Depending upon future evaluations of the
business prospects of the Company and upon other developments, including, but
not limited to, general economic and business conditions and money market and
stock market conditions, DDJ and the DDJ Affiliates may determine to cease
making additional purchases of Shares or to increase or decrease the equity
interest in the Company by acquiring additional Shares, or by disposing of all
or a portion of the Shares.
Neither DDJ nor any of the DDJ Affiliates has any present plan or proposal
which relates to or would result in (i) an extraordinary corporate transaction,
such as a merger, reorganization, liquidation, or sale of transfer or a material
amount of assets of or involving the Company or any of its subsidiaries, (ii)
any change in the Company's present Board of Directors or management, (iii) any
material changes in the Company's present capitalization or dividend policy or
any other material change in the Company's
<PAGE>
Schedule 13D
- --------------------------------------------------------------------------------
CUSIP NO. 431692102 Page l2 of 16 Pages
- --------------------------------------------------------------------------------
business or corporate structure, (iv) any change in the Company's charter or
bylaws, (v) the Company's Shares becoming eligible for termination of their
registration pursuant to Section 12(g)(4) of the 1934 Act, or (vi) any similar
action.
Item 5. Interest in Securities of Issuer:
(a) DDJ Overseas Corp. owns, and DDJ Galileo, LLC and DDJ Galileo
Management LLC beneficially own as majority shareholder and investment manager,
respectively, of DDJ Overseas Corp. 564,425 Shares, or approximately 5.54% of
the outstanding Shares of the Company. The Galileo Fund, L.P. owns, and DDJ
Galileo, LLC and DDJ Galileo Management, LLC beneficially own, as general
partner and investment manager, respectively of The Copernicus Fund, L.P. 10,300
Shares, or approximately .1O% of the outstanding Shares of the Company. The
Copernicus Fund, L.P. owns, and DDJ Copernicus, LLC and DDJ Copernicus
Management, LLC beneficially own, as general partner and investment manager,
respectively, of The Copernicus Fund, L.P. 186,909 Shares, or approximately
1.83% of the outstanding Shares of the Company. DDJ, as administrator to the
other DDJ Affiliates, may be deemed to beneficially own 761,634 Shares, or
approximately 7.47% of the outstanding Shares of the Company. DDJ disclaims any
such beneficial ownership. Neither DDJ nor any of the DDJ Affiliates and, to the
best knowledge of DDJ and the DDJ Affiliates, none of the persons named in
Schedule A, beneficially own any other Shares.
(b) Each of the aforementioned entities has sole power to vote and to
dispose of the Shares so indicated.
(c) Except as set forth in Item 3, neither DDJ nor any of the DDJ
Affiliates, and, to the best knowledge of DDJ and the DDJ Affiliates, none of
the persons named in Schedule A hereto have effected any transaction in the
Shares during the past sixty days.
Item 6. Contracts, Arrangements, Understandings or Relationships With
Respect to Securities of the Issuer.
Other than the margin agreements described in Item 3 above and except as
described in the following paragraph, neither DDJ nor any of the DDJ Affiliates
and, to the best knowledge of DDJ and the DDJ Affiliates, none of the persons
named in Schedule A hereto have any contract, arrangement, understanding or
relationship with
<PAGE>
Schedule 13D
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CUSIP NO. 431692102 Page l3 of 16 Pages
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any person with respect to any securities of the Company, including respecting
voting or transfer of Company securities or joint venture, finder's fee or the
like.
The Funds may from time to time own debt securities issued by the Company,
and may from time to time purchase and or sell such debt securities.
Item 7. Material to be filed as Exhibits:
Not Applicable.
<PAGE>
Schedule 13D
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CUSIP NO. 431692102 Page l4 of 16 Pages
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SCHEDULE A
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The name and present principal occupation or employment of each executive
officer and member of DDJ Capital Management, LLC and each of the DDJ Affiliates
are set forth below. The business address of each person is 141 Linden Street,
Suite 4, Wellesley, MA 02181 and the address of the corporation or organization
in which such employment is conducted is the same as each person's business
address, except that the principal address of DDJ Overseas Corp. is set forth in
Item 2. All of the persons listed below are U.S. citizens.
NAME PRINCIPAL OCCUPATION OR EMPLOYMENT
- ---- ----------------------------------
Daniel G. Harmetz Principal of DDJ Capital Management, LLC, DDJ
Galileo, LLC, DDJ Galileo Management, LLC, DDJ
Copernicus, LLC and DDJ Copernicus Management, LLC
David J. Breazzano Principal of DDJ Capital Management, LLC,
DDJ Galileo, LLC, DDJ Galileo Management, LLC, DDJ
Copernicus, LLC and DDJ Copernicus Management, LLC
Judy K. Mencher Principal of DDJ Capital Management, LLC, DDJ
Galileo, LLC, DDJ Galileo Management, LLC, DDJ
Copernicus, LLC, DDJ Copernicus Management, LLC and Vice
President of DDJ Overseas Corp.
<PAGE>
Schedule 13D
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CUSIP NO. 431692102 Page l5 of 16 Pages
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SCHEDULE B
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Hills Stores Company
- --------------------
Set forth below is an itemization of all purchases and sales of Shares of
Common Stock since June 16, 1996. The transactions were made for cash in open
market transactions.
DATE TYPE-PURCHASE SHARES AGGREGATE
OR SALE PRICE
=======================================================================
07/01/96 Purchase 10,000 $ 67,571.29
07/03/96 Sell long 5,000 $ 47,248.41
07/11/96 Purchase 6,000 $ 50,298.00
07/15/96 Purchase 71,000 $517,022.00
07/15/96 Purchase 24,000 $174,768.00
07/17/96 Purchase 15,000 $117,000.00
07/22/96 Purchase 4,500 $ 33,975.00
07/31/96 Purchase 1,000 $ 7,300.00
08/09/96 Purchase 5,000 $ 35,250.00
08/14/96 Purchase 60,000 $442,998.00
08/15/96 Purchase 94,000 $720,002.40
08/15/96 Purchase 8,200 $ 62,808.72
08/15/96 Purchase 5,500 $ 44,564.30
08/15/96 Purchase 800 $ 6,635.04
08/15/96 Purchase 63,600 $515,325.36
08/15/96 Purchase 2,000 $ 16,100.00
08/16/96 Purchase 300 $ 2,565.00
08/16/96 Purchase 10,000 $ 86,750.00
<PAGE>
Schedule 13D
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CUSIP NO. 431692102 Page l6 of 16 Pages
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Signature:
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After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
DDJ CAPITAL MANAGEMENT, LLC
DDJ GALILEO, LLC
DDJ GALILEO MANAGEMENT, LLC
DDJ COPERNICUS MANAGEMENT, LLC.
DDJ OVERSEAS CORP.
DDJ COPERNICUS LLC on behalf of itself and as General Partner for THE COPERNICUS
FUND, L.P.
By: /s/ Judy K. Mencher
-------------------
Judy K. Mencher
Member of DDJ Capital Management, LLC, DDJ Copernicus, LLC,
DDJ Galileo, LLC, DDJ Galileo Management, LLC
DDJ Copernicus Management, LLC and
Vice President of DDJ Overseas Corp.
Dated:
