SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) FEBRUARY 5, 1998
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STEVEN MADDEN, LTD.
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
NEW YORK 0-23702 13-3588231
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(STATE OR OTHER (COMMISSION (IRS EMPLOYER
JURISDICTION OF FILE NUMBER) IDENTIFICATION NO.)
FORMATION)
52-16 BARNETT AVENUE, LONG ISLAND CITY, NEW YORK 11104
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (718) 446-1800
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(FORMER NAME OR FORMER ADDRESS, IF CHANGES SINCE LAST REPORT)
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ITEM 5. OTHER EVENTS.
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The Registrant has been advised by BOCAP Corp. ("BOCAP"), a company
beneficially owned by Steven Madden, the Registrant's Chairman of the Board,
Chief Executive Officer and President, that a lawsuit brought by Jordan Belfort
in June 1997 against BOCAP, the Registrant, Mr. Madden and Farmstead Consulting
Inc. was settled on February 5, 1998.
In connection with the settlement with Mr. Belfort, BOCAP borrowed $2.9
million (the "Loan") from a lender and pledged 899,000 shares of the
Registrant's Common Stock as collateral for the repayment therefor (the "Pledge
Shares"). In addition, the Registrant guaranteed BOCAP's obligations under the
Loan until the Pledged Shares are registered for sale to the public or the Loan
is repaid in full, whichever occurs first.
Item 7. FINANCIAL STATEMENTS, PRO FORMA INFORMATION AND EXHIBITS.
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(c) Exhibits
1. Press Release of the Registrant dated February 6, 1998.
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<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly authorized and caused the undersigned to sign this
Report on the Registrant's behalf.
STEVEN MADDEN, LTD.
By: /s/ Steven Madden
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Steven Madden
Chairman of the Board, Chief Executive
Officer and President
Dated: February 12, 1998
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EXHIBIT 1
PRESS RELEASE
[STEVE MADDEN LOGO]
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STEVE MADDEN LTD.
52-16 BARNETT AVENUE
LONG ISLAND CITY, NY 11104
Tel. (718) 446-1800
Fax. (718) 446-5599
FOR IMMEDIATE RELEASE
STEVEN MADDEN LTD. ANNOUNCES FINAL SETTLEMENT OF BELFORT LITIGATION
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LONG ISLAND CITY, N.Y. - February 6, 1998 - Steven Madden, Ltd.,
(NASDAQ: SHOO), a leading designer, wholesaler and retailer of fashion footwear
for women announced today a final settlement of a lawsuit brought by Jordan
Belfort against BOCAP Corp., a company beneficially owned by Steven Madden, the
Company's Chairman of the Board, CEO and President, the Company, Mr. Madden and
Farmstead Consulting, Inc.
On June 3, 1997, Mr. Belfort filed a complaint alleging that BOCAP
Corp. failed to repay a promissory note issued to Mr. Belfort in 1993 and the
shares of the Company's stock were pledged as collateral for the note.
At a court conference held on January 15, 1998, the parties to the
litigation negotiated a settlement in principle of all outstanding claims and
disputes among them. With the completion of the settlement transactions on
February 5, 1998, Mr. Belfort has abandoned his claim to ownership of the
pledged shares.
Steven Madden, the Company's Chairman of the Board and Chief Executive
Officer, commented, "We are very pleased by the amicable settlement which was
reached with Mr. Belfort in finalizing the matter. Now we can focus our efforts
in aggressively growing our business to upscale specialty stores, department
stores and footwear boutiques, as well as ramping up our own Steven Madden
retail stores where we plan to open 10 new stores in 1998, in addition to the 18
stores currently in operation."
Steven Madden Ltd. designs and markets fashion footwear for women. The
shoes are sold through Steve Madden Retail Stores, Department Stores, Apparel
and Footwear Specialty Stores and on-line @ www.stevemadden.com. The Company has
six licenses including ready-to-wear and jeans, outerwear, eyewear, legwear,
handbags, and jewelry.
CONTACT: Company Contact:
Steven Madden Ltd.
Steven Madden, Chairman and CEO
Rhonda Brown, Chief Operating Officer
(718) 446-1800
Investor Relations:
Kehoe, White, Savage & Company, Inc.
James K. White
(562) 437-0655
Statements in this press release that are not statements of historical or
current fact constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other unknown
factors that could cause the actual results of the Company to be materially
different from the historical results or from any future results expressed or
implied by such forward-looking statements. In addition to statements, which
explicitly describe such risks, and uncertainties readers are urged to consider
statements labeled with the terms "believes", "belief", "expects", "intends",
"anticipates" or "plans" to be uncertain and forward looking. The forward
looking statements contained herein are also subject generally to other risks
and uncertainties that are described from time to time in the Company's reports
and registration statements filed with the Securities and Exchange Commission.
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