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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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SCHEDULE 13G
(RULE 13D - 102)
INFORMATION TO BE INCLUDED IN STATEMENTS
PURSUANT TO RULES 13D-1(B) AND (C) AND
AMENDMENTS THERETO FILED PURSUANT TO 13D-2
(AMENDMENT NO._____)*
HILLS STORES COMPANY
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(Name of Issuer)
Series A Convertible Preferred Stock
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(Title of Class of Securities)
431692201
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(CUSIP Number)
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*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 the disclosures provided in a prior cover page.
The information required in 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).
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATIONS NOS. OF ABOVE PERSONS
Forest Investment Management LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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5 SOLE VOTING POWER
NUMBER OF 125,000
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
----- -----------------------------------------------
6 SHARED VOTING POWER
Zero
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7 SOLE DISPOSITIVE POWER
125,000
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8 SHARED DISPOSITIVE POWER
Zero
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
125,000
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES* [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
14.7%
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12 TYPE OF REPORTING PERSON*
IA
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATIONS NOS. OF ABOVE PERSONS
Founders Financial Group, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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5 SOLE VOTING POWER
NUMBER OF 125,000
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
----- -----------------------------------------------
6 SHARED VOTING POWER
Zero
----- -----------------------------------------------
7 SOLE DISPOSITIVE POWER
125,000
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8 SHARED DISPOSITIVE POWER
Zero
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
125,000
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES* [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
14.7%
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12 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATIONS NOS. OF ABOVE PERSONS
Michael A. Boyd, Inc.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Connecticut
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5 SOLE VOTING POWER
NUMBER OF 125,000
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
----- -----------------------------------------------
6 SHARED VOTING POWER
Zero
----- -----------------------------------------------
7 SOLE DISPOSITIVE POWER
125,000
----- -----------------------------------------------
8 SHARED DISPOSITIVE POWER
Zero
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
125,000
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES* [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
14.7%
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12 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATIONS NOS. OF ABOVE PERSONS
Michael A. Boyd
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ]
- --------- ----------------------------------------------------------------------
3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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5 SOLE VOTING POWER
NUMBER OF 125,000
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
----- -----------------------------------------------
6 SHARED VOTING POWER
Zero
----- -----------------------------------------------
7 SOLE DISPOSITIVE POWER
125,000
----- -----------------------------------------------
8 SHARED DISPOSITIVE POWER
Zero
- --------- ----------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
125,000
- --------- ----------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES* [ ]
- --------- ----------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
14.7%
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12 TYPE OF REPORTING PERSON*
IN
- --------- ----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
ITEM 1.
(A) NAME OF ISSUER.
Hills Stores Company (the "Issuer").
(B) ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES.
The Issuer's principal executive offices are located at
15 Dan Road, Canton, Massachusetts 02021.
ITEM 2.
(A) NAMES OF PERSONS FILING.
This statement is filed by the following persons: (a) Forest Investment
Management LLC, an Investment Advisor registered under the Investment Advisors
Act of 1940, as amended ("Forest"), (b) Founders Financial Group L.P.
("Founders"), in its capacity as the owner of a controlling interest in Forest,
(c) Michael A. Boyd, Inc. ("MAB, Inc."), in its capacity as the general partner
of Founders and (d) Michael A. Boyd ("Mr. Boyd"), in his capacity as the sole
director and shareholder of MAB, Inc. (collectively, the "Filing Parties").
(B) ADDRESS OF PRINCIPAL BUSINESS OFFICE.
The principal business office of each of the Filing Parties is 53 Forest
Avenue, Old Greenwich, Connecticut 06870.
(C) CITIZENSHIP.
Forest is a Delaware Limited Liability Company. Founders is a Delaware
limited partnership. MAB, Inc. is a Connecticut corporation. Mr. Boyd is a
United States citizen.
(D) TITLE OF CLASS OF SECURITIES.
This statement relates to shares of Series A Convertible Preferred Stock
(the "Preferred Stock") of the Issuer.
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(E) CUSIP NUMBER.
431692201
ITEM 3. This statement is being filed pursuant to Rule 13d-1(b).
(a) : Broker or dealer registered under Section 15 of the Act,
(b) : Bank as defined in Section 3(a)(6) of the Act,
(c) : Insurance Company as defined in Section 3(a)(19) of the Act,
(d) : Investment Company registered under Section 8 of the Investment
Company Act,
(e) |X| Investment Adviser registered under Section 203 of the
Investment Advisers Act of 1940,
(f) : Employee Benefit Plan, Pension Fund which is subject to the
provisions of the Employee Retirement Income Security Act of
1974 or Endowment Fund; See 13d-1(b)(1)(ii)(F),
(g) : Parent Holding Company, in accordance with Rule 13d-1(b)(ii)(G);
See Item 7,
(h) : Group, in accordance with Rule 13d-1(b)(1)(ii)(H).
ITEM 4. OWNERSHIP.
(A) AMOUNT BENEFICIALLY OWNED.
Each of Forest, Founders, MAB, Inc. and Mr. Boyd beneficially owns 125,000
shares of Issuer's Preferred Stock.
(B) PERCENT OF CLASS.
Each of Forest, Founders, MAB, Inc. and Mr. Boyd owns 14.7% of the Issuer's
Preferred Stock.
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(C) POWER TO VOTE OR DIRECT THE VOTE AND DISPOSE OR DIRECT THE DISPOSITION
OF SECURITIES.
Each of Forest, Founders, MAB, Inc. and Mr. Boyd has sole power to vote or
dispose or to direct the vote or disposition of the shares of Preferred Stock.
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.
If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of more than
five percent of the class of securities, check the following [ ]
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.
Not applicable.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED
THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY.
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.
Not applicable.
ITEM 9. NOTICE OF DISSOLUTION OF GROUP.
Not applicable.
ITEM 10. CERTIFICATION.
By signing below I certify that, to the best of my knowledge and belief,
the securities referred to above were acquired and are held in the ordinary
course of business and were not acquired and are not held for the purpose of or
with the effect of changing or influencing the control of the issuer of the
securities and were not acquired and are not held in connection with or as a
participant in any transaction having that purpose or effect.
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SIGNATURE
After reasonable inquiry and to the best knowledge and belief of the
undersigned, the undersigned certify that the information set forth in this
statement is true, complete and correct.
FOREST INVESTMENT MANAGEMENT LLC
Dated: December 10, 1998 By: /S/ MICHAEL A. BOYD
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Michael A. Boyd, Chairman
FOUNDERS FINANCIAL GROUP, L.P.
Dated: December 10, 1998 By: /S/ MICHAEL A. BOYD
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Michael A. Boyd, Chairman
MICHAEL A. BOYD, INC.
Dated: December 10, 1998 By: /S/ MICHAEL A. BOYD
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Name: Michael A. Boyd
Title: President
MICHAEL A. BOYD
Dated: December 10, 1998 By: /S/ MICHAEL A. BOYD
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Name: Michael A. Boyd
