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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. _________)*
Garden Botanika, Inc.
(Name of Issuer)
Common Stock, $.01 par value
(Title of Class of Securities)
364854109
(CUSIP Number)
*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 ("Act") 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> 2
13G
- ------------------- --------------------
CUSIP NO. 364854109 Page 2 of 13 Pages
- ------------------- --------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Desai Capital Management Incorporated
13-3229933
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY ---------------------------------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH
REPORTING 522,306 Shares
PERSON ---------------------------------------------------------------
WITH 7 SOLE DISPOSITIVE POWER
0
---------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
522,306 Shares
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
522,306 Shares
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
/ /
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
7.39%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IA, CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 3
13G
- -------------------- -------------------
CUSIP NO. 364854109 Page 3 of 13 Pages
- -------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Rohit Mojilal Desai
###-##-####
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY ---------------------------------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH
REPORTING 522,306 Shares
PERSON ---------------------------------------------------------------
WITH 7 SOLE DISPOSITIVE POWER
0
---------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
522,306 Shares
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
522,306 Shares
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
7.39%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 4
13G
- -------------------- -------------------
CUSIP NO. 364854109 Page 4 of 13 Pages
- -------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Rohit M. Desai Associates
13-3240237
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY ---------------------------------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH
REPORTING 261,153 Shares
PERSON ---------------------------------------------------------------
WITH 7 SOLE DISPOSITIVE POWER
0
---------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
261,153 Shares
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
261,153 Shares
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
3.7%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 5
13G
- -------------------- -------------------
CUSIP NO. 364854109 Page 5 of 13 Pages
- -------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Rohit M. Desai Associates-II
13-3426754
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
NUMBER OF 0
SHARES -----------------------------------------------------------
BENEFICIALLY 6 SHARED VOTING POWER
OWNED BY
EACH 261,153 Shares
REPORTING -----------------------------------------------------------
PERSON 7 SOLE DISPOSITIVE POWER
WITH
0
-----------------------------------------------------------
8 SHARED DISPOSITIVE POWER
261,153 Shares
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
261,153 Shares
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
3.7%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 6
13G
- ------------------- -------------------
CUSIP NO. 364854109 Page 6 of 13 Pages
- ------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Equity-Linked Investors, L.P.
13-3240235
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH
REPORTING 261,153 Shares
PERSON --------------------------------------------------------------
WITH 7 SOLE DISPOSITIVE POWER
0
--------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
261,153 Shares
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
261,153 Shares
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
3.7%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IV; PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 7
13G
- ------------------- -------------------
CUSIP NO. 364854109 Page 7 of 13 Pages
- ------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Equity-Linked Investors-II
13-3427026
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY ---------------------------------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH
REPORTING 261,153 Shares
PERSON ---------------------------------------------------------------
WITH 7 SOLE DISPOSITIVE POWER
0
---------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
261,153 Shares
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
261,153 Shares
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*/ /
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
3.7%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IV, PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 8
CUSIP NO. 364854109 Page 8 of 13
Item 1.
(a) This statement relates to Garden Botanika, Inc. (the
"Issuer").
(b) The address of the Issuer's principal executive office is 8624
154th Avenue N.E., Redmont, WA 98052.
Item 2.
(a) This statement is filed by Desai Capital Management
Incorporated ("DCMI"), Rohit M. Desai, Rohit M. Desai
Associates ("RMDA-I"), Equity-Linked Investors, L.P.
("ELI-I"), Rohit M. Desai Associates-II ("RMDA-II"), and
Equity-Linked Investors-II ("ELI-II").
(b) The address of the principal business office of each reporting
person is 540 Madison Avenue, 36th Floor, New York, N.Y.
10022.
(c) ELI-I and ELI-II are New York limited partnerships. RMDA-I and
RMDA-II are New York general partnerships. DCMI is a
corporation incorporated in and based in the State of New York
and Rohit M. Desai is a U.S. citizen.
(d) This statement relates to the Common Stock, $.01 par value, of
Garden Botanika, Inc. (the "Common Stock").
(e) The CUSIP Number is 364854109.
Item 3.
(a) DCMI is a New York corporation whose principal business is
that of an investment adviser. DCMI is registered under
section 203 of the Investment Advisors Act of 1940.
Rohit M. Desai is the president, treasurer and chairman of the
board of directors of DCMI and is the sole stockholder of
DCMI, the managing general partner of Rohit M. Desai
Associates (the general partner of ELI-I), and the managing
general partner of Rohit M. Desai Associates-II (the general
partner of ELI-II).
ELI-I and ELI-II are New York limited partnerships whose
principal business is investing in a portfolio of convertible
debt securities, convertible preferred stock and other debt
securities
<PAGE> 9
CUSIP NO. 364854109 Page 9 of 13
with equity features.
RMDA-I is a New York general partnership and is the general
partner of ELI-I. RMDA-I has no business activities other than
acting as ELI-I's general partner. RMDA-II is a New York
general partnership and is the general partner of ELI-II.
RMDA-II has no business activities other than acting as
ELI-II's general partner.
Item 4. Ownership.
(a) See Items 5 through 9 of the cover pages as to each reporting
person.
As of December 31, 1996, ELI-I directly owned 261,153 shares
of the Issuer's Common Stock and ELI-II directly owned 261,153
shares of the Issuer's Common Stock. RMDA-I could be deemed
beneficial owner, for purposes of this Schedule 13G, of the
shares of Common Stock held by ELI-I. RMDA-II could be deemed
beneficial owner, for purposes of this Schedule 13G, of shares
of Common Stock held by ELI-II. Each of DCMI and Rohit M.
Desai could be deemed to be beneficial owners, for purposes of
this Schedule 13G, of the shares of Common Stock held by ELI-I
and ELI-II.
(b) See item 11 of cover pages as to each reporting person.
(c) The power to vote or to dispose of, or to direct the voting or
disposal of, any such Common Stock held by ELI-I is vested in
RMDA-I as general partner of ELI-I, but such decisions (and
similar decisions with respect to the rest of ELI-I's
investment portfolio) may also be made by DCMI under an
investment and advisory agreement between ELI-I and DCMI. The
power to vote or to dispose of, or to direct the voting or
disposal of, any such Common Stock held by ELI-II is vested in
RMDA-II as general partner of ELI-II, but such decisions (and
similar decisions with respect to the rest of ELI-II's
investment portfolio) may also be made by DCMI under an
investment and advisory agreement between ELI-II and DCMI.
Rohit M. Desai is the managing general partner of RMDA-I and
RMDA-II and the sole stockholder, chairman of the board of
directors, president and treasurer of DCMI.
Accordingly, for the purposes of Schedule 13G, ELI-I, ELI-
<PAGE> 10
CUSIP NO. 364854109 Page 10 of 13
II, DCMI, RMDA-I, RMDA-II and Rohit M. Desai may each be
deemed to share the power to vote or to direct the vote and
may be deemed to share the power to dispose or to direct the
disposition with respect to the securities covered by this
statement and therefore each may be deemed to be a beneficial
owner with respect to such securities.
Pursuant to Rule 13d-4 under the Securities Exchange Act of
1934, DCMI, RMDA-I, RMDA-II, and Rohit M. Desai, the filing of this Statement
shall not be construed as an admission that any person other than ELI-I and
ELI-II is the beneficial owner of any securities covered by this Statement or
that either ELI-I or ELI-II is the beneficial owner of any securities held by
any others (including the Other Shareholders).
Item 5. Ownership of Five Percent or Less of a Class.
Not Applicable.
Item 6. Ownership of More than Five Percent on Behalf of Another Person.
No person other than ELI-I, ELI-II, DCMI, RMDA-I, RMDA-II or Rohit M.
Desai, is known to have the right to receive or the power to direct the
receipt of dividends from, or the proceeds from the sale of, the
securities covered by this Statement.
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.
As described in Item 4 above, RMDA-I, RMDA-II, DCMI and Rohit M. Desai
may each be deemed to be a beneficial owner of shares of Common Stock
held by ELI-I and ELI-II as the members of a group under Section 13d of
the Securities Exchange Act of 1934, as amended.
Item 9. Notice of Dissolution of Group.
Not Applicable.
Item 10. Certification.
After reasonable inquiry and to the best of my knowledge and belief, I
certify that
<PAGE> 11
CUSIP NO. 364854109 Page 11 of 13
the information set forth in this statement, which is being filed on
behalf of each of the undersigned, is true, complete and correct.
<PAGE> 12
CUSIP NO. 364854109 Page 12 of 13
Date: February 14, 1997
EQUITY-LINKED INVESTORS, L.P.
By: Rohit M. Desai Associates
General Partner
By: /s/Kathy T. Abramson
---------------------------------------
Attorney-in-fact for
Rohit M. Desai
Managing General Partner
ROHIT M. DESAI ASSOCIATES
By: /s/Kathy T. Abramson
---------------------------------------
Attorney-in-fact for
Rohit M. Desai
Managing General Partner
EQUITY-LINKED INVESTORS-II
By: Rohit M. Desai Associates-II
General Partner
By: /s/Kathy T. Abramson
---------------------------------------
Attorney-in-fact for
Rohit M. Desai
Managing General Partner
ROHIT M. DESAI ASSOCIATES-II
By: /s/Kathy T. Abramson
--------------------------------------
Attorney-in-fact for
Rohit M. Desai
- - Managing General Partner
<PAGE> 13
CUSIP NO. 364854109 Page 13 of 13
DESAI CAPITAL MANAGEMENT
INCORPORATED
By: /s/ Kathy T. Abramson
---------------------------------------
Attorney-in-fact for
Rohit M. Desai
President
/s/Kathy T. Abramson
---------------------------------------
Attorney-in-fact for
Rohit M. Desai
