UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Amendment NO. 1)*
Under the Securities Exchange Act of 1934
FAC Realty, Inc.
(formerly known as Factory Stores of America, Inc.)
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
0003030691
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(CUSIP Number)
John W. Gildea
Gildea Management Company
115 East Putnam Avenue
Greenwich, CT 06830
(203) 661-6945
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(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
July 22, 1996
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(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 / /. (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 Rul 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.
* 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 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act.
Page 1 of 6 Pages
385648.2
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CUSIP No. 0003030691 SCHEDULE 13D Page 2 of 6 Pages
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S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON1
John W. Gildea
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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 SOURCE OF FUNDS
PF2
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) / /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
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7 SOLE VOTING POWER
3,000
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
------------------------------------------------------
8 SHARED VOTING POWER
-0-
------------------------------------------------------
9 SOLE DISPOSITIVE POWER
114,111
------------------------------------------------------
10 SHARED DISPOSITIVE POWER
746,666
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
860,777 Shares
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.68 %
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14 TYPE OF REPORTING PERSON
IN
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1 Filing jointly pursuant to Rule 13d-1(f)(1) of the Securities Exchange Act
of 1934, as amended.
2 Mr. Gildea used personal funds to purchase the 3,000 shares which are
beneficially owned by him and to purchase the right to acquire the
additional 111,111 shares which may be beneficially owned by him. The
right to acquire the balance of the shares, or 746,666 shares, was
purchased by Network Fund, III, Ltd., with its working capital.
385648.2
<PAGE>
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CUSIP No. 0003030691 SCHEDULE 13D Page 2 of 6 Pages
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1 NAME OF REPORTING PERSON1
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Network Fund III, Ltd.
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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 SOURCE OF FUNDS
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) / /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands, B.W.I.
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7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY EACH
REPORTING
PERSON WITH
---------------------------------------------------
8 SHARED VOTING POWER
-0-
---------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
---------------------------------------------------
10 SHARED DISPOSITIVE POWER
746,666
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
746,666 Shares
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.85%
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14 TYPE OF REPORTING PERSON1
CO
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1 Filing jointly pursuant to Rule 13d-1(f)(1) of the Securities Exchange Act
of 1934, as amended.
385648.2
<PAGE>
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CUSIP No. 0003030691 SCHEDULE 13D Page 2 of 6 Pages
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This Amendment No. 1 amends and supplements the
Schedule 13D dated April 30, 1996 which was filed jointly by John W.
Gildea and Network Fund III, Ltd.
Item 1. Security and Issuer.
Item I is hereby amended and restated as follows:
This Statement on Schedule 13D (the "Schedule 13D) relates to
the Common Stock, par value $0.01 per share (the "Common Stock"), of FAC
Realty, Inc. (formerly known as Factory Stores of America, Inc.), a Delaware
corporation (the "Company"). The address of the principal executive offices of
the Company is 230 N. Equity Drive, Smithfield, North Carolina 27577.
Item 3. Source and Amount of Funds or Other Consideration.
Item 3 is hereby amended by inserting the following as the
seventh and eighth paragraphs thereof (with the effect of making the former
seventh paragraph thereof the ninth paragraph thereof without any further
amendment thereto):
The Certificate of Designation which created the Series A
Convertible Preferred Stock, par value $25.00 per share, of the Company
("Preferred Stock"), become effective as of July 1, 1996.
On August 1, 1996 (i) the Network Exchangeable Notes were
exchanged for an aggregate of 268,800 shares of Preferred Stock (the "Network
Preferred Shares") and (ii) the Gildea Exchangeable Note was exchanged for
40,000 shares of Preferred Stock (the "Gildea Preferred Shares"), in each case
in accordance with the terms and conditions of the Notes. Based upon the
present conversion price of $9.00 per share (which is subject to adjustment
from time to time in accordance with the terms of the Preferred Stock) (i) the
Network Preferred Shares may be converted at the option of Network into the
Network Shares and (ii) the Gildea Preferred Shares may be converted at the
option of Gildea into the Gildea Shares.
Item 3 is hereby further amended by deleting the last
paragraph thereof and inserting the following:
Reference is made to Exhibits 3-6 for a complete description
of the terms of the Note Purchase Agreement, the Notes and the Preferred Stock.
Item 4. Purpose of Transaction.
Item 4 is hereby amended by deleting the second paragraph
thereof and inserting the following:
Network acquired the Network Preferred Shares and thereby the
right to acquire the Network Shares pursuant to the terms of the Note Purchase
Agreement and Network intends to hold the Network Preferred Shares and any
Network Shares obtained upon conversion of the Network Preferred Shares for
investment. Gildea acquired the Gildea Preferred Shares and thereby the right
to acquire 111,111 of the Gildea Shares pursuant to the terms of the Note
Purchase Agreement and
385648.2
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CUSIP No. 0003030691 SCHEDULE 13D Page 2 of 6 Pages
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Gildea intends to hold the Gildea Preferred Shares and any Gildea Shares
obtained upon conversion of the Gildea Preferred Shares for investment.
Item 5. Interest in Securities of the Issuer.
Items 5(a) and (b) are hereby amended and restated as
follows:
(a) and (b). The aggregate percentage of shares of Common
Stock reported hereunder is based upon the 12,026,013 shares of Common Stock
outstanding as reported in the Company's Quarterly Report on Form 10-Q for the
fiscal year ended March 31, 1996. This Schedule 13D does not report 4,000
shares of Common Stock held by Gildea's spouse as custodian for Gildea's
children. Each of Network and Gildea disclaims beneficial ownership of all such
4,000 shares.
(a) (i) Network is the direct beneficial owner of the
746,666 Network Shares which are issuable upon
conversion of the Network Preferred Shares. Gildea
may be deemed to be the indirect, beneficial owner
of such 746,666 Network Shares. The 746,666 Network
Shares represent approximately 5.85% of the
outstanding Common Stock (calculated in accordance
with Rule 13d-3).
(ii) The 3,000 Gildea Shares directly beneficially owned
by Gildea, the 746,666 Network Shares that Gildea
may be deemed to indirectly own beneficially and the
111,111 remaining Gildea Shares which are issuable
upon conversion of the Gildea Preferred Shares that
Gildea is the direct beneficial owner of represent
in the aggregate approximately 6.68% of the
outstanding Common Stock (calculated in accordance
with Rule 13d-3).
(b) (i) Network and Gildea may be deemed to share the power
to dispose of or direct the disposition of the right
to acquire the Network Shares issuable upon
conversion of the Network Preferred Shares.
(ii) Gildea has sole power to vote or to direct the
voting, and the sole right to dispose or to direct
the disposition, of 3,000 of the Gildea Shares.
Gildea has the sole power to dispose of or direct
the disposition of the right to acquire the
remaining 111,111 Gildea Shares issuable upon
conversion of the Gildea Preferred Shares.
385648.2
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of their respective knowledge
and belief, the undersigned certify that the information set forth in this
statement is true, complete and correct.
Dated: August 1, 1996
NETWORK FUND III, LTD.
By: /s/ John W. Gildea
-----------------------------------
Name: John W. Gildea
Title: Chairman
/s/ John W. Gildea
-------------------------------------
John W. Gildea
385648.2
