<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
Footstar, Inc.
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(Name of Issuer)
Common Stock, par value $.01 per share
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(Title of Class of Securities)
344912-10-0
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(CUSIP Number)
Janice V. Sharry, Esq.
Haynes and Boone, LLP
901 Main Street, Suite 3100
Dallas, Texas 75202
(214) 651-5562
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
October 24, 2000
--------------------------------------------------------
(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 that is the subject of this Schedule 13D, and is filing this
schedule because of Sections 240.13d-1(e), (f) or (g), check the following box
[ ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Section 240.13d-7(b) 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 (however, see the
Notes).
<PAGE> 2
SCHEDULE 13D
----------------------
CUSIP No. 344912-10-0
----------------------
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NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
ESL Partners, L.P., a Delaware limited partnership
22-2875193
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
2
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SEC USE ONLY
3
--------------------------------------------------------------------------------
SOURCE OF FUNDS
4
WC
--------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
5
N/A
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CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
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SOLE VOTING POWER
7
NUMBER OF 3,222,075
SHARES ------------------------------------------------------
BENEFICIALLY SHARED VOTING POWER
OWNED BY 8
EACH 0
REPORTING ------------------------------------------------------
PERSON SOLE DISPOSITIVE POWER
WITH 9
3,222,075
------------------------------------------------------
SHARED DISPOSITIVE POWER
10
0
--------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
11
4,387,300
--------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES [ ]
12
N/A
--------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
22.49%(1)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
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(1) Based on 19,506,813 shares of Common Stock issued and outstanding as of
July 1, 2000, as disclosed in the Issuer's 10-Q for the quarter ended
July 1, 2000 filed with the Securities and Exchange Commission.
<PAGE> 3
----------------------
CUSIP No. 344912-10-0
----------------------
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NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
ESL Limited, a Bermuda corporation
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
2
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SEC USE ONLY
3
--------------------------------------------------------------------------------
SOURCE OF FUNDS
4
WC
--------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
5
N/A
--------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Bermuda
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SOLE VOTING POWER
7
NUMBER OF 438,414
SHARES ------------------------------------------------------
BENEFICIALLY SHARED VOTING POWER
OWNED BY 8
EACH 0
REPORTING ------------------------------------------------------
PERSON SOLE DISPOSITIVE POWER
WITH 9
438,414
------------------------------------------------------
SHARED DISPOSITIVE POWER
10
0
--------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
11
4,387,300
--------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES [ ]
12
N/A
--------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
22.49%(1)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
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(1) Based on 19,506,813 shares of Common Stock issued and outstanding as of
July 1, 2000, as disclosed in the Issuer's 10-Q for the quarter ended
July 1, 2000 filed with the Securities and Exchange Commission.
<PAGE> 4
----------------------
CUSIP No. 344912-10-0
----------------------
--------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
ESL Institutional Partners, L.P., a Delaware limited partnership
06-1456821
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
2
--------------------------------------------------------------------------------
SEC USE ONLY
3
--------------------------------------------------------------------------------
SOURCE OF FUNDS
4
WC
--------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
5
N/A
--------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
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SOLE VOTING POWER
7
NUMBER OF 109,501
SHARES ------------------------------------------------------
BENEFICIALLY SHARED VOTING POWER
OWNED BY 8
EACH 0
REPORTING ------------------------------------------------------
PERSON SOLE DISPOSITIVE POWER
WITH 9
109,501
------------------------------------------------------
SHARED DISPOSITIVE POWER
10
0
--------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
11
4,387,300
--------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES [ ]
12
N/A
--------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
22.49%(1)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
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(1) Based on 19,506,813 shares of Common Stock issued and outstanding as of
July 1, 2000, as disclosed in the Issuer's 10-Q for the quarter ended
July 1, 2000 filed with the Securities and Exchange Commission.
<PAGE> 5
----------------------
CUSIP No. 344912-10-0
----------------------
--------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
ESL Investors, L.L.C., a Delaware limited liability company
13-4095958
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
2
--------------------------------------------------------------------------------
SEC USE ONLY
3
--------------------------------------------------------------------------------
SOURCE OF FUNDS
4
WC
--------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
5
N/A
--------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
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SOLE VOTING POWER
7
NUMBER OF 617,310
SHARES ------------------------------------------------------
BENEFICIALLY SHARED VOTING POWER
OWNED BY 8
EACH 0
REPORTING ------------------------------------------------------
PERSON SOLE DISPOSITIVE POWER
WITH 9
617,310
------------------------------------------------------
SHARED DISPOSITIVE POWER
10
0
--------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
11
4,387,300
--------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES [ ]
12
N/A
--------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
22.49%(1)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
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(1) Based on 19,506,813 shares of Common Stock issued and outstanding as of
July 1, 2000, as disclosed in the Issuer's 10-Q for the quarter ended
July 1, 2000 filed with the Securities and Exchange Commission.
<PAGE> 6
Item 1. Security and Issuer.
This Statement on Schedule 13D (this "Statement") relates to the shares of
Common Stock, par value $.01 per share (the "Shares"), of Footstar, Inc. (the
"Issuer"). The address of the principal executive offices of the Issuer is 933
Macarthur Blvd., Mahwah, New Jersey 07430.
Item 2. Identity and Background.
(a) The names of the persons filing this Statement are ESL Partners, L.P.,
ESL Limited, ESL Institutional Partners, L.P. and ESL Investors, L.L.C.
(b) The principal business addresses of ESL Partners, L.P., ESL
Institutional Partners, L.P. and ESL Investors, L.L.C. is One Lafayette Place,
Greenwich, CT 06830. The principal business address of ESL Limited is Hemisphere
House, 9 Church Street, Hamilton, Bermuda.
(c) 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"), ESL Institutional Partners, L.P., a Delaware limited
partnership ("Institutional") and ESL Investors, L.L.C., a Delaware limited
liability company ("Investors"). 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 ("Investments"). 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. The
General Partner is the manager of Investors. In the aforementioned capacities,
ESL, Limited, Institutional and Investors each may be deemed to be the
beneficial owner of the Shares beneficially owned by the other members of the
group.
The principal business of ESL, Limited, Institutional and Investors is
purchasing, holding and selling securities for investment purposes. The
principal business of the General Partner is serving as the general partner of
ESL. The principal business of Investments is serving as the general partner of
the General Partner. The principal business of ESLIM is serving as the
investment manager for Limited. The principal business of RBSIM is serving as
the investment manager of Institutional.
(d) and (e) During the past five years, none of the foregoing entities has
been convicted in a criminal proceeding or been a party to a civil proceeding,
in either case of the type specified in Items 2(d) or (e) of Schedule 13D.
(f) ESL, Institutional and Investors are citizens of Delaware, and Limited
is a citizen of Bermuda.
Item 3. Source and Amount of Funds or Other Consideration.
The total amount of funds required by ESL for the purchase of 3,222,075
Shares was approximately $77,956,000 and was obtained from working capital. The
total amount of funds required by Limited for the purchase of 438,414 Shares was
approximately $10,694,000 and was obtained from working capital. The total
amount of funds required by Institutional for the purchase of 109,501 Shares was
approximately $2,632,000 and was obtained from working
<PAGE> 7
capital. The total amount of funds used for the purchase of 617,310 Shares owned
by Investors was approximately $18,828,000 and was obtained from working
capital.
Item 4. Purpose of Transaction.
ESL, Limited, Institutional and Investors (the "Filing Persons")
acquired their Shares in the ordinary course of business solely for investment
purposes and not for the purposes of participating in the management of the
Issuer. The Filing Persons currently have no plans or proposals with respect to
the matters set forth in paragraphs (a) through (g) of Item 4 of Schedule 13D,
except as may be set forth herein.
From time to time, the Filing Persons have held discussions with
certain members of management regarding the advisability of certain alternatives
to increase the value of the Issuer's Shares, including repurchases by the
Issuer of its outstanding Shares.
Because management has not been willing to take certain actions to
increase the value of the Issuer's Shares, the Filing Persons believe that they
should consider alternative plans or proposals relating to their relationship
with the Issuer as a means of influencing actions which could increase the value
of the Issuer's Shares. In this context, the Filing Persons note that the Issuer
did not repurchase any Shares in the quarter ended September 30, 2000.
The Filing Persons intend to continue to hold further discussions with
certain members of management and other stockholders of the Issuer and may take
further action to implement various strategies to increase the value of the
Issuer's Shares. In order to effectuate these strategies, over time the Filing
Persons may seek changes in the composition of the current Board of Directors,
including the inclusion of one or more representatives of the Filing Persons and
one or more additional independent directors. The Filing Persons may also
request that the Board of Directors redeem the Issuer's Rights Agreement, dated
as of March 8, 1999 (the "Rights Agreement"). The Filing Persons intend to
discuss these and other issues, including possible business combinations, with
certain other holders of the Shares, financial institutions, potential
investors, and others, including the Issuer.
The Filing Persons reserve the right to acquire additional Shares,
subject to the terms of the Rights Agreement and applicable law, to dispose of
such Shares at any time or to formulate other purposes, plans or proposals
regarding the Issuer or the Shares, to the extent they deem advisable in light
of their general investment policies, then current market conditions or other
factors.
Item 5. Interest in Securities of the Issuer.
(a) Pursuant to that certain Joint Filing Agreement, entered into by
and among ESL, Limited, Institutional and Investors, dated as of October 24,
2000 (attached hereto as Exhibit 1 and incorporated herein by reference), each
of ESL, Limited, Institutional and Investors may be deemed to beneficially own
4,387,300 Shares (which is approximately 22.49% of the Shares outstanding on
July 1, 2000, as disclosed in the Issuer's 10-Q for the quarter ended July 1,
2000 filed with the Securities and Exchange Commission).
<PAGE> 8
(b)
<TABLE>
<CAPTION>
Sole Shared Sole Shared
Voting Voting Dispositive Dispositive
Power Power Power Power
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
ESL Partners, L.P. 3,222,075 0 3,222,075 0
ESL Limited 438,414 0 438,414 0
ESL Institutional Partners, L.P. 109,501 0 109,501 0
ESL Investors, L.L.C. 617,310 0 617,310 0
</TABLE>
(c) In the past sixty days, there were no transactions in the Shares by
ESL, Limited, Institutional or Investors.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to
Securities of the Issuer.
Except as set forth in Item 5 hereof, there are no contracts,
arrangements, understandings or relationships between ESL, Limited,
Institutional and Investors or any other person with respect to the securities
of the Issuer.
Item 7. Material to be Filed as Exhibits.
Exhibit 1. Joint Filing Agreement, dated as of October 24, 2000,
entered into by and among ESL, Limited, Institutional and Investors.
<PAGE> 9
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 24, 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
ESL INVESTORS, L.L.C.
By: RBS Partners, L.P., its manager
By: ESL Investments, Inc., its general
partner
By: /s/ EDWARD S. LAMPERT
-----------------------------------
Edward S. Lampert
Chairman
<PAGE> 10
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
------- -----------
<S> <C>
1 Joint Filing Agreement, dated as of October 24, 2000,
entered into by and among ESL Partners, L.P., ESL
Limited, ESL Institutional Partners, L.P. and ESL
Investors, L.L.C.
</TABLE>
