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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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SCHEDULE 14D-1
TENDER OFFER STATEMENT PURSUANT TO SECTION 14(d)(1) OF THE SECURITIES
EXCHANGE ACT OF 1934
AMENDMENT NO. 1
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HILLS STORES COMPANY
(NAME OF SUBJECT COMPANY)
GALE ISLAND, LLC
A DELAWARE LIMITED LIABILITY COMPANY
GLOBAL CAPITAL MANAGEMENT, INC.,
A DELAWARE CORPORATION
(BIDDER)
SERIES A CONVERTIBLE PREFERRED STOCK,
PAR VALUE $0.10 PER SHARE
(TITLE OF CLASS OF SECURITIES)\
431692 20 1
(CUSIP Number of Class of Securities)
Thomas A. Schmidt
601 Carlson Parkway - Suite 200
Minnetonka, Minnesota 55305
(612) 476-7200
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications on Behalf of Bidder)
with a copy to:
Peter R. Pancione, Esq.
Gipson Hoffman & Pancione, P.C.
1901 Avenue of the Stars - Suite 1100
Los Angeles, California 90067
(310) 556-4660
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CALCULATION OF FILING FEE
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TRANSACTION VALUATION* AMOUNT OF FILING FEE
$149,500 $29.90
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* FOR PURPOSES OF CALCULATING THE FILING FEE ONLY. THIS CALCULATION
ASSUMES THE PURCHASE OF 46,000 SHARES AT $3.25 NET IN CASH PER SHARE.
THE AMOUNT OF THE FILING FEE, CALCULATED IN ACCORDANCE WITH REGULATION 0-
11 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, EQUALS 1/50 OF ONE
PERCENT OF THE VALUE OF SHARES ASSUMED TO BE PURCHASED.
[ ] CHECK BOX IF ANY PART OF THE FEE IS OFFSET AS PROVIDED BY RULE 0-11(A)(2)
AND IDENTIFY THE FILING WITH WHICH THE OFFSETTING FEE WAS PREVIOUSLY
PAID. IDENTIFY THE PREVIOUS FILING BY REGISTRATION STATEMENT NUMBER, OR
THE FORM OR SCHEDULE AND THE DATE OF ITS FILING.
AMOUNT PREVIOUSLY PAID: NOT APPLICABLE FILING PARTY: NOT APPLICABLE
FORM OF REGISTRATION NO.: NOT APPLICABLE DATE FILED: NOT APPLICABLE
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CUSIP NO. 431692 20 1 Page 2 of 6 Pages
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1. Names of Reporting Persons
S.S. or I.R.S. Identification Nos. of Above Persons
Gale Island, LLC
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2. Check the Appropriate Box if a Member of a Group (See
Instructions) (a)
(b)
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3. SEC Use Only
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4. Sources of Funds (See Instructions)
WC
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5. Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(e) or 2(f)
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6. Citizenship or Place of Organization
State of Delaware
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7. Aggregate Amount Beneficially Owned By Each Reporting Person
40,000 Shares of Series A Convertible Preferred Stock, per value
$0.10 per share
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8. Check if the Aggregate in Row (7) Excludes Certain Shares (See
Instructions)
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9. Percent of Class Represented by Amount in Row (7)
Approximately 4.6%
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10. Type of Reporting Persons (See Instructions)
00
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CUSIP NO. 431692 20 1 Page 3 of 6 Pages
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1. Names of Reporting Persons
S.S. or I.R.S. Identification Nos. of Above Persons
Global Capital Management, Inc.
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2. Check the Appropriate Box if a Member of a Group (See
Instructions) (a)
(b)
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3. SEC Use Only
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4. Sources of Funds (See Instructions)
WC
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5. Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(e) or 2(f)
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6. Citizenship or Place of Organization
State of Delaware
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7. Aggregate Amount Beneficially Owned By Each Reporting Person
40,000 Shares of Series A Convertible Preferred Stock, per value
$0.10 per share
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8. Check if the Aggregate in Row (7) Excludes Certain Shares (See
Instructions)
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9. Percent of Class Represented by Amount in Row (7)
Approximately 4.6%
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10. Type of Reporting Persons (See Instructions)
Co
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AMENDMENT NO. 1 TO SCHEDULE 14D-1
This Amendment No. 1 amends the Tender Offer Statement on Schedule 14D-1
filed by Gale Island, LLC, a Delaware limited liability company (the
Purchaser") and Global Capital Management Inc., a Delaware corporation, with the
Securities and Exchange Commission on February 5, 1998, relating to the tender
offer by The Purchaser to purchase up to 46,000 shares of Class A Convertible
Preferred Stock, par value $0.10 per Share ("Shares") of Hills Stores Company, a
Delaware corporation, upon the terms and subject to the conditions set forth in
the Purchaser's Offer to Purchase dated February 5, 1998 and the related
Agreement of Transfer and Sale to include the information set forth below.
Capitalized Terms set forth herein shall have the same meaning as set forth
in the Offer to Purchase.
ITEM 1. SECURITY AND SUBJECT COMPANY
(b) The Offer has been terminated by the Purchaser and Purchaser will not
purchase any of the Shares due to regulatory requirements, which in the judgment
of the Purchaser, makes it inadvisable to proceed with the purchase of the
Shares. All Shares tendered will be promptly returned to their owners.
ITEM 11. MATERIAL TO BE FILED AS EXHIBITS
(a)(5) - Press Release dated March 11, 1998.
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SIGNATURE
After due 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.
Dated: March 11, 1998 GALE ISLAND, LLC
By: Global Capital Management, Inc.,
a Delaware corporation,
its Manager
By: /s/ Michael J. Frey
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Michael J. Frey, Vice President
GLOBAL CAPITAL MANAGEMENT, INC.,
a Delaware corporation
By: /s/ Michael J. Frey
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Michael J. Frey, Vice President
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EXHIBIT INDEX
SEQUENTIAL
EXHIBIT NO. DESCRIPTION PAGE NUMBER
(a)(5) Press Release dated March 11, 1998.
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PRESS RELEASE
FOR IMMEDIATE RELEASE
Contact: Erik Dieterle
Gale Island, LLC
800-547-0854
GALE ISLAND, LLC
MINNETONKA, MINNESOTA (March 11, 1998) - GALE ISLAND, LLC has announced
that its offer to purchase up to 46,000 of the issued and outstanding Shares of
Series A Convertible Preferred Stock, par value $0.10 per Share, of Hills Stores
Company for $3.25 per Share, has been terminated and that it will not purchase
any Shares. The Offer has been terminated by the Purchaser due to regulatory
requirements, which in the judgement of the Purchaser, makes it inadvisable to
proceed with the purchase of the Shares. All Shares tendered to Gale Island
will be promptly returned to their owners.
For additional information, contact Erik Dieterle at 800-547-0854.
