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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934*
Payless ShoeSource, Inc.
- --------------------------------------------------------------------------------
(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)
August 11, 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
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
CUSIP NO. 704379106 PAGE 2 OF 8 PAGES
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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
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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5 SOLE VOTING POWER
NUMBER OF
SHARES 1,637,943
BENEFICIALLY ----------------------------------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH
REPORTING 0
PERSON ----------------------------------------------------------------
WITH 7 SOLE DISPOSITIVE POWER
1,637,943
----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,092,000
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
6.71%
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12 TYPE OF REPORTING PERSON
PN
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SCHEDULE 13G
CUSIP NO. 704379106 PAGE 3 OF 8 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
ESL Limited, a Bermuda corporation
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [X]
(b) [ ]
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3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Bermuda
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
NUMBER OF
SHARES 401,101
BENEFICIALLY ----------------------------------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH
REPORTING 0
PERSON ----------------------------------------------------------------
WITH 7 SOLE DISPOSITIVE POWER
401,101
----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,092,000
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
6.71%
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12 TYPE OF REPORTING PERSON
CO
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SCHEDULE 13G
CUSIP NO. 704379106 PAGE 4 OF 8 PAGES
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
NUMBER OF
SHARES 52,956
BENEFICIALLY ----------------------------------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH
REPORTING 0
PERSON ----------------------------------------------------------------
WITH 7 SOLE DISPOSITIVE POWER
52,956
----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,092,000
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
6.71%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
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Page 5 of 8 Pages
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
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: 2,092,000 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 August 23, 1999, (i) ESL was the record owner of 1,637,943
shares of common stock of Payless ShoeSource, Inc.; (ii) Limited
was the record owner of 401,101 shares of common stock of Payless
ShoeSource, Inc.; and (iii) Institutional was the record owner of
52,956 shares of common stock of Payless ShoeSource, Inc.
(b) Percent of Class: 6.71%.
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Page 7 of 8 Pages
(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
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: August 23, 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
President
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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INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit
No. Description
- ------- -----------
<S> <C>
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.
</TABLE>
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EXHIBIT 1
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(k) promulgated under the Securities
Exchange Act of 1934, as amended, the persons named below agree to the joint
filing on behalf of each of them a Statement on Schedule 13G (including
amendments thereto) with regard to the common stock of Payless ShoeSource, Inc.,
and further agree that this Joint Filing Agreement be included as an Exhibit to
such joint filings. In evidence thereof, the undersigned, being duly authorized,
hereby execute this Agreement as of the 23rd day of August, 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
President
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
