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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.2)*
Payless ShoeSource, Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, par value $.01 per share
- --------------------------------------------------------------------------------
(Title of Class of Securities)
704379106
- --------------------------------------------------------------------------------
(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>
SCHEDULE 13G
===============================================================================
- ---------------------- -----------------
CUSIP NO. 704379106 Page 2 of 8 Pages
- ---------------------- -----------------
- ------------------------------------------------------------------------------
NAMES OF REPORTING PERSONS.
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
ESL Partners, L.P., a Delaware limited partnership
22-2875193
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF
3,438,248
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 6
OWNED BY 0
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
7
REPORTING
3,438,248
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 8
0
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
4,358,300
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
10 (SEE INSTRUCTIONS)
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
14.39%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
12
PN
- ------------------------------------------------------------------------------
<PAGE>
- ---------------------- -----------------
CUSIP NO. 704379106 Page 3 of 8 Pages
- ---------------------- -----------------
- ------------------------------------------------------------------------------
NAMES OF REPORTING PERSONS.
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
ESL Limited, a Bermuda corporation
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Bermuda
- ------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF
812,829
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 6
OWNED BY 0
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
7
REPORTING
812,829
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 8
0
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
4,358,300
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
10 (SEE INSTRUCTIONS)
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
14.39%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
12
CO
- ------------------------------------------------------------------------------
<PAGE>
- ---------------------- -----------------
CUSIP NO. 704379106 Page 4 of 8 Pages
- ---------------------- -----------------
- ------------------------------------------------------------------------------
NAMES OF REPORTING PERSONS.
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
ESL Institutional Partners, L.P., a Delaware limited partnership
06-1456821
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF
107,223
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 6
OWNED BY 0
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
7
REPORTING
107,223
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 8
0
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
4,358,300
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
10 (SEE INSTRUCTIONS)
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
14.39%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
12
PN
- ------------------------------------------------------------------------------
<PAGE>
-------------------
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
<PAGE>
--------------------
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
(S)240.13d-1(b)(1)(ii)(E);
(f) [ ] An employee benefit plan or endowment fund in accordance
with (S)240.13d-1(b)(1)(ii)(F);
(g) [ ] A parent holding company or control person in accordance
with (S)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 (S)240.13d-1(b)(1)(ii)(J).
Item 4 Ownership:
- ------ ---------
(a) Amount Beneficially Owned: 4,358,300 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 December 31, 1999, (i) ESL was the record owner of 3,438,248
shares of common stock of Payless ShoeSource, Inc.; (ii) Limited
was the record owner of 812,829 shares of common stock of Payless
ShoeSource, Inc.; and (iii) Institutional was the record owner of
107,223 shares of common stock of Payless ShoeSource, Inc.
(b) Percent of Class: 14.39%.
<PAGE>
---------------------
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.
<PAGE>
-----------------------
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: February 14, 2000
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
<PAGE>
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).
