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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. 1)*
Payless ShoeSource, Inc.
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(Name of Issuer)
Common Stock, par value $.01 per share
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(Title of Class of Securities)
704379106
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(CUSIP Number)
October 26, 1999
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(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which
this Schedule is filed: [ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
* 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).
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB control number.
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SCHEDULE 13G
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CUSIP No. - 704379106 Page 2 of 8 Pages
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<TABLE>
<S> <C>
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
ESL Partners, L.P., a Delaware limited partnership
22-2875193
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OR ORGANIZATION
Delaware
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5 SOLE VOTING POWER
NUMBER OF 2,541,747
SHARES ----------------------------------------------------------
BENEFICIALLY 6 SHARED VOTING POWER
OWNED BY 0
EACH ----------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON 2,541,747
WITH ----------------------------------------------------------
8 SHARED DISPOSITIVE POWER
0
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,246,700
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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)
10.45%
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12 TYPE OF REPORTING PERSON
PN
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</TABLE>
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CUSIP No. - 704379106 Page 3 of 8 Pages
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<TABLE>
<S> <C>
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
ESL Limited, a Bermuda corporation
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OR ORGANIZATION
Bermuda
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5 SOLE VOTING POWER
NUMBER OF 622,774
SHARES ----------------------------------------------------------
BENEFICIALLY 6 SHARED VOTING POWER
OWNED BY 0
EACH ----------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON 622,774
WITH ----------------------------------------------------------
8 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,246,700
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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)
10.45%
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12 TYPE OF REPORTING PERSON
CO
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</TABLE>
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CUSIP No. - 704379106 Page 4 of 8 Pages
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<TABLE>
<S> <C>
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
ESL Institutional Partners, L.P., a Delaware limited partnership
06-1456821
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OR ORGANIZATION
Delaware
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5 SOLE VOTING POWER
NUMBER OF 82,179
SHARES ----------------------------------------------------------
BENEFICIALLY 6 SHARED VOTING POWER
OWNED BY 0
EACH ----------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON 82,179
WITH ----------------------------------------------------------
8 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,246,700
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
10.45%
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12 TYPE OF REPORTING PERSON
PN
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</TABLE>
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Page 5 of 8 Pages
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Item 1(a) Name of Issuer:
Payless ShoeSource, Inc.
Item 1(b) Address of Issuer's Principal Executive Offices:
3231 Southeast Sixth Street
Topeka, Kansas 66607-2207
Item 2(a) Names of Persons Filing:
ESL Partners, L.P.
ESL Limited
ESL Institutional Partners, L.P.
Item 2(b) Addresses of Principal Business Offices:
ESL Partners, L.P. and ESL Institutional Partners, L.P.:
One Lafayette Place
Greenwich, CT 06830
ESL Limited
Hemisphere House
9 Church Street
Hamilton, Bermuda
Item 2(c) Citizenship:
ESL Partners, L.P. -- Delaware
ESL Limited -- Bermuda
ESL Institutional Partners, L.P. -- Delaware
Item 2(d) Title of Class of Securities:
Common Stock, par value $.01 per share
Item 2(e) CUSIP Number:
704379106
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Page 6 of 8 Pages
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Item 3 Status of Persons Filing:
(a) [ ] Broker or dealer registered under section 15 of the Act
(15 U.S.C. 78o);
(b) [ ] Bank as defined in section 3(a)(6) of the Act
(15 U.S.C. 78c);
(c) [ ] Insurance company as defined in section 3(a)(19) of the
Act (15 U.S.C. 78c);
(d) [ ] Investment company registered under section 8 of the
Investment Company Act of 1940 (15 U.S.C. 80a-8);
(e) [ ] An investment adviser in accordance with
Section 240.13d-1(b)(1)(ii)(E);
(f) [ ] An employee benefit plan or endowment fund in accordance
with Section 240.13d-1(b)(1)(ii)(F);
(g) [ ] A parent holding company or control person in accordance
with Section 240.13d- 1(b)(1)(ii)(G);
(h) [ ] A savings association as defined in Section 3(b) of the
Federal Deposit Insurance Act (12 U.S.C. 1813);
(i) [ ] A church plan that is excluded from the definition of an
investment company under section 3(c)(14) of the
Investment Company Act of 1940 (15 U.S.C. 80a-3).
(j) [ ] Group, in accordance with Section 240.13d-1(b)(1)(ii)(J).
Item 4 Ownership:
(a) Amount Beneficially Owned: 3,246,700 shares of Common Stock,
par value $.01 per share.
This statement is filed on behalf of a group consisting of
ESL Partners, L.P., a Delaware limited partnership ("ESL"),
ESL Limited, a Bermuda corporation ("Limited"), and ESL
Institutional Partners, L.P., a Delaware limited partnership
("Institutional"). The general partner of ESL is RBS
Partners, L.P. (the "General Partner"). The general partner
of the General Partner of ESL is ESL Investments, Inc., a
Delaware corporation. ESL Investment Management, LLC, a
Delaware limited liability company ("ESLIM"), is the
investment manager of Limited. RBS Investment Management,
LLC, a Delaware limited liability company ("RBSIM") is the
general partner of Institutional. In the aforementioned
capacities, ESL, Limited, and Institutional each may be
deemed to be the beneficial owner of the shares of Payless
ShoeSource, Inc. common stock beneficially owned by the
other members of the group.
As of October 29, 1999, (i) ESL was the record owner of
2,541,747 shares of common stock of Payless ShoeSource,
Inc.; (ii) Limited was the record owner of 622,774 shares of
common stock of Payless ShoeSource, Inc.; and (iii)
Institutional was the record owner of 82,179 shares of
common stock of Payless ShoeSource, Inc.
(b) Percent of Class: 10.45%.
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Page 7 of 8 Pages
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(c) Number of shares as to which each person has:
(i) sole power to vote or to direct the vote:
See Item 5 of each cover page.
(ii) shared power to vote or to direct the vote: 0.
(iii) sole power to dispose or to direct the disposition of:
See Item 7 of each cover page.
(iv) shared power to dispose or to direct the disposition
of: 0.
Item 5 Ownership of 5% or Less of a Class:
Not applicable.
Item 6 Ownership of More than 5% 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:
See Item 4(a).
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 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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Page 8 of 8 Pages
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SIGNATURE
After reasonable 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.
Date: October 29, 1999
ESL PARTNERS, L.P.
By: RBS Partners, L.P., its general partner
By: ESL Investments, Inc., its general partner
By: /s/ EDWARD S. LAMPERT
----------------------------------------
Edward S. Lampert
Chairman
ESL LIMITED
By: ESL Investment Management, LLC,
its investment manager
By: /s/ EDWARD S. LAMPERT
----------------------------------------
Edward S. Lampert
Managing Member
ESL INSTITUTIONAL PARTNERS, L.P.
By: RBS Investment Management, LLC, its general
partner
By: /s/ EDWARD S. LAMPERT
----------------------------------------
Edward S. Lampert
Managing Member
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EXHIBITS
Exhibit 1 Joint Filing Agreement, dated as of August 23, 1999, entered into
by and among ESL Partners, L.P., ESL Limited, and ESL Institutional
Partners, L.P. (incorporated by reference from the Schedule 13G of
ESL Partners, L.P., ESL Limited and ESL Institutional Partners,
L.P. filed as of August 23, 1999).
