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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)
----------
WOOLWORTH CORPORATION
(Name of Issuer)
Common Stock, $.01 par value per share 980883 10 2
(Title of class of securities) (CUSIP number)
Gary K. Duberstein, Esq.
Greenway Partners, L.P.
277 Park Avenue, 27th Floor
New York, New York 10172 (212) 350-5100
(Name, address and telephone number of person authorized
to receive notices and communications)
June 3, 1998
(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 ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(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 ss. 240.13d-7 for other
parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 15 pages)
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NYFS11...:\92\56392\0003\1751\SCH6048M.230
- ----------------------------------- ----------------------------------
CUSIP No. 980883 10 2 13D Page 2 of 15 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENWAY PARTNERS, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. 13-3714238
OF ABOVE PERSON
- ------------------ -------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- ------------------ -------------------------------------------------------------
3 SEC USE ONLY
- ------------------ -------------------------------------------------------------
4 SOURCE OF FUNDS: WC, OO
- ------------------ -------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------ -------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 1,375,700
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 1,375,700
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 1,375,700
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 1.0%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ------------------ -------------------------------------------------------------
- ----------------------------------- ----------------------------------
CUSIP No. 980883 10 2 13D Page 3 of 15 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENTREE PARTNERS, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. 13-3752875
OF ABOVE PERSON
- ------------------ -------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- ------------------ -------------------------------------------------------------
3 SEC USE ONLY
- ------------------ -------------------------------------------------------------
4 SOURCE OF FUNDS: WC, OO
- ------------------ -------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------ -------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 700,000
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 700,000
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 700,000
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.5%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ------------------ -------------------------------------------------------------
- ----------------------------------- ----------------------------------
CUSIP No. 980883 10 2 13D Page 4 of 15 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENHOUSE PARTNERS, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. 13-3793447
OF ABOVE PERSON
- ------------------ -------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- ------------------ -------------------------------------------------------------
3 SEC USE ONLY
- ------------------ -------------------------------------------------------------
4 SOURCE OF FUNDS: WC, AF, OO
- ------------------ -------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------ -------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,375,700
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,375,700
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 1,375,700
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 1.0%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ------------------ -------------------------------------------------------------
- ----------------------------------- ----------------------------------
CUSIP No. 980883 10 2 13D Page 5 of 15 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENHUT, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. 13-3793450
OF ABOVE PERSON
- ------------------ -------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- ------------------ -------------------------------------------------------------
3 SEC USE ONLY
- ------------------ -------------------------------------------------------------
4 SOURCE OF FUNDS: WC, AF, OO
- ------------------ -------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------ -------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 700,000
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 700,000
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 700,000
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.5%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
- ------------------ -------------------------------------------------------------
- ----------------------------------- ----------------------------------
CUSIP No. 980883 10 2 13D Page 6 of 15 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENBELT CORP.
S.S. OR I.R.S. IDENTIFICATION NO. 13-3791931
OF ABOVE PERSON
- ------------------ -------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- ------------------ -------------------------------------------------------------
3 SEC USE ONLY
- ------------------ -------------------------------------------------------------
4 SOURCE OF FUNDS: OO
- ------------------ -------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------ -------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 5,194,422
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 5,194,422
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 5,194,422
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 3.8%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
- ------------------ -------------------------------------------------------------
- ----------------------------------- ----------------------------------
CUSIP No. 980883 10 2 13D Page 7 of 15 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENSEA OFFSHORE, L.P.
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ------------------ -------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- ------------------ -------------------------------------------------------------
3 SEC USE ONLY
- ------------------ -------------------------------------------------------------
4 SOURCE OF FUNDS: WC, OO
- ------------------ -------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------ -------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Cayman Islands
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 950,000
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 950,000
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 950,000
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.7%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ------------------ -------------------------------------------------------------
- ----------------------------------- ----------------------------------
CUSIP No. 980883 10 2 13D Page 8 of 15 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENHUT OVERSEAS, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. 13-3868906
OF ABOVE PERSON
- ------------------ -------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- ------------------ -------------------------------------------------------------
3 SEC USE ONLY
- ------------------ -------------------------------------------------------------
4 SOURCE OF FUNDS: WC, AF, OO
- ------------------ -------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------ -------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 950,000
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 950,000
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 950,000
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.7%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
- ------------------ -------------------------------------------------------------
- ----------------------------------- ----------------------------------
CUSIP No. 980883 10 2 13D Page 9 of 15 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON ALFRED D. KINGSLEY
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ------------------ -------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- ------------------ -------------------------------------------------------------
3 SEC USE ONLY
- ------------------ -------------------------------------------------------------
4 SOURCE OF FUNDS: PF, AF, OO
- ------------------ -------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------ -------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 8,220,122
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 8,220,122
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 8,220,122
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 6.1%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ------------------ -------------------------------------------------------------
- ----------------------------------- ----------------------------------
CUSIP No. 980883 10 2 13D Page 10 of 15 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GARY K. DUBERSTEIN
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ------------------ -------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- ------------------ -------------------------------------------------------------
3 SEC USE ONLY
- ------------------ -------------------------------------------------------------
4 SOURCE OF FUNDS: PF, AF, OO
- ------------------ -------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------ -------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 8,220,122
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 8,220,122
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 8,220,122
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 6.1%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ------------------ -------------------------------------------------------------
This Amendment No. 1 ("Amendment No. 1") amends the Statement on
Schedule 13D (the "Schedule 13D") filed on May 18, 1998 by and on behalf of
Greenway Partners, L.P. ("Greenway"), Greentree Partners, L.P. ("Greentree"),
Greenhouse Partners, L.P. ("Greenhouse"), Greenhut, L.L.C. ("Greenhut"),
Greenbelt Corp. ("Greenbelt"), Greensea Offshore, L.P. ("Greensea"), Greenhut
Overseas, L.L.C. ("Greenhut Overseas"), Alfred D. Kingsley and Gary K.
Duberstein (collectively, the "Reporting Persons"). Capitalized terms used
herein and not defined herein have the meanings ascribed thereto in the Schedule
13D.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Since the filing of the Schedule 13D, accounts managed by Greenbelt
purchased an aggregate of 140,000 Shares for total consideration (including
brokerage commissions) of $2,789,974 derived from capital in the managed
accounts and margin indebtedness from Bear, Stearns & Co. Inc.
ITEM 4. PURPOSE OF THE TRANSACTION
The Reporting Persons distributed a written communication dated May
28, 1998 to the other shareholders of the Company. The text of this
communication is set forth in Exhibit 5 attached hereto, which is incorporated
herein by reference.
The Reporting Persons distributed a written communication dated June
3, 1998 to the other shareholders of the Company. The text of this communication
is set forth in Exhibit 6 attached hereto, which is incorporated herein by
reference.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) As of the date of this Statement, the Reporting Persons
beneficially owned in the aggregate 8,220,122 Shares constituting 6.1% of the
outstanding Shares (the percentage of Shares owned being based upon 135,251,929
Shares outstanding on April 23, 1998, as set forth in the Company's Proxy
Statement dated April 28, 1998 relating to the Company's 1998 annual meeting of
shareholders). The Reporting Persons may be deemed to have direct beneficial
ownership of Shares as follows:
Approximate
Number of Percentage of
Name Shares Outstanding Shares
---- ------ ------------------
Greenway 1,375,700 1.0%
Greentree 700,000 0.5%
Greenbelt 5,194,422 3.8%
Greensea 950,000 0.7%
Greenhouse, as the general partner of Greenway, may be deemed to own
beneficially (as that term is defined in Rule 13d-3 under the Securities
Exchange Act of 1934) Shares which Greenway may be deemed to possess direct
beneficial ownership. Each of Messrs. Kingsley and Duberstein, as general
partners of Greenhouse, may be deemed to beneficially own Shares which
Greenhouse may be deemed to beneficially own. Each of Messrs. Kingsley and
Duberstein disclaims beneficial ownership of such Shares for all other purposes.
11
Greenhut, as the general partner of Greentree, may be deemed to own
beneficially (as that term is defined in Rule 13d-3 under the Securities
Exchange Act of 1934) Shares which Greentree may be deemed to possess direct
beneficial ownership. Each of Messrs. Kingsley and Duberstein, as members of
Greenhut, may be deemed to beneficially own Shares which Greenhut may be deemed
to beneficially own. Each of Messrs. Kingsley and Duberstein disclaims
beneficial ownership of such Shares for all other purposes.
Greenhut Overseas, as the investment general partner of Greensea,
may be deemed to own beneficially (as that term is defined in Rule 13d-3 under
the Securities Exchange Act of 1934) Shares which Greensea may be deemed to
possess direct beneficial ownership. Each of Messrs. Kingsley and Duberstein, as
members of Greenhut Overseas, may be deemed to beneficially own Shares which
Greenhut Overseas may be deemed to beneficially own. Each of Messrs. Kingsley
and Duberstein disclaims beneficial ownership of such Shares for all other
purposes.
Greenbelt has direct beneficial ownership of the Shares in the
accounts which it manages. In addition, Greenbelt is the investment advisor for
Greenland Investment Company Limited, a Cayman Islands company ("Greenland"). In
such capacity, Greenbelt has the right to vote and direct the disposition of the
205,000 Shares held by Greenland and, consequently, has direct beneficial
ownership of such Shares. Substantially all of the equity interests in Greenland
are owned by Strategic Investment Partners Limited ("SIPL"). Because SIPL has
the right to elect to terminate its investment in Greenland upon less than 60
days' notice and, upon such termination, all securities held by Greenland would
be sold by Greenland or, with SIPL's consent, distributed to SIPL in kind, SIPL
could be deemed to be the beneficial owner of the Shares held by Greenland.
Information concerning SIPL and the identity and background of certain
individuals and entities related thereto is set forth on Exhibit 2 to the
Schedule 13D and incorporated herein by reference. Each of Messrs. Kingsley and
Duberstein, as executive officers and directors of Greenbelt, may be deemed to
beneficially own Shares which Greenbelt beneficially owns. Each of Messrs.
Kingsley and Duberstein disclaims beneficial ownership of such Shares for all
other purposes.
(b) Greenway has the sole power to vote or direct the vote of
1,375,700 Shares and the sole power to dispose or to direct the disposition of
such Shares. Greenhouse and Messrs. Kingsley and Duberstein may be deemed to
share with Greenway the power to vote or to direct the vote and to dispose or to
direct the disposition of such Shares.
Greentree has the sole power to vote or direct the vote of 700,000
Shares and the sole power to dispose or direct the disposition of such Shares.
Greenhut and Messrs. Kingsley and Duberstein may be deemed to share with
Greentree the power to vote or to direct the vote and to dispose or to direct
the disposition of such Shares.
Greensea has the sole power to vote or direct the vote of 950,000
Shares and the sole power to dispose or direct the disposition of such Shares.
Greenhut Overseas and Messrs. Kingsley and Duberstein may be deemed to share
with Greensea the power to vote or to direct the vote and to dispose or to
direct the disposition of such Shares.
Greenbelt has the sole power to vote or direct the vote of 4,989,422
Shares held in managed accounts and the 205,000 Shares held by Greenland, and,
except as described in Item 5(a) with respect to Greenland, the sole power to
dispose or direct the disposition of all such Shares. Messrs. Kingsley and
Duberstein may be deemed to share with Greenbelt the power to vote or to direct
the vote and to dispose or to direct the disposition of such Shares.
12
(c) Information concerning transactions in the Shares by the
Reporting Persons since the filing of the Schedule 13D is set forth in Exhibit 4
attached hereto, which is incorporated herein by reference.
(d) No other person is known to have the right to receive or the
power to direct the receipt of dividends from, or the proceeds from the sale of,
the Shares, except the dividends from, or proceeds from the sale of Shares in
each respective account managed by Greenbelt or held by Greenland will be
delivered into each such respective account or Greenland, as the case may be.
Neither any such individual account nor Greenland has an interest in more than
five percent of the class of outstanding Shares.
(e) Not applicable.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
The following Exhibit is filed herewith:
4. Information concerning transactions in the Shares effected by the
Reporting Persons since the filing of the Schedule 13D.
5. Written communication dated May 28, 1998 from the Reporting
Persons to the other shareholders of the Company.
6. Written communication dated June 3, 1998 from the Reporting
Persons to the other shareholders of the Company.
[The remainder of this page intentionally left blank.]
13
SIGNATURES
After reasonable inquiry and to the best of their knowledge and
belief, the undersigned certify that the information contained in this Statement
is true, complete and correct.
Dated: June 4, 1998
GREENHOUSE PARTNERS, L.P. GREENWAY PARTNERS, L.P.
By: Greenhouse Partners, L.P., its
general partner
By: /s/ Gary K. Duberstein
------------------------------
Gary K. Duberstein, general By: /s/ Gary K. Duberstein
partner ------------------------------
Gary K. Duberstein, general
partner
GREENHUT, L.L.C. GREENTREE PARTNERS, L.P.
By: Greenhut, L.L.C., its general
partner
By: /s/ Gary K. Duberstein
------------------------------
Gary K. Duberstein, Member By: /s/ Gary K. Duberstein
------------------------------
Gary K. Duberstein, Member
GREENHUT OVERSEAS, L.L.C. GREENSEA OFFSHORE, L.P.
By: Greenhut Overseas, L.L.C., its
investment general partner
By: /s/ Gary K.Duberstein
------------------------------
Gary K. Duberstein, Member By: /s/ Gary K. Duberstein
------------------------------
Gary K. Duberstein, Member
GREENBELT CORP.
By: /s/ Alfred D. Kingsley
------------------------------
Alfred D. Kingsley, President
/s/ Alfred D. Kingsley
------------------------------
Alfred D. Kingsley
/s/ Gary K. Duberstein
------------------------------
Gary K. Duberstein
14
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
- ----------- -----------
4. Information concerning transactions in the Shares effected by
the Reporting persons since the filing of the Schedule 13D.
5. Written communication dated May 28, 1998 from the Reporting
Persons to the other shareholders of the Company.
6. Written communication dated June 3, 1998 from the Reporting
Persons to the other shareholders of the Company.
15
Exhibit 4
TRANSACTIONS IN SHARES OF THE COMPANY
-------------------------------------
The Reporting Persons engaged in the following transactions in
Shares of the Company since the filing of the Schedule 13D. All transactions
involved purchases of Shares on the New York Stock Exchange.
Reporting Person Price Per
With Direct Share
Beneficial Date of Number of (Excluding
Ownership Transaction Shares Commission
- --------- ----------- ------ ----------
Greenbelt 5/26/98 80,000 20.1133
Greenbelt 5/27/98 60,000 19.5885
NYFS11...:\92\56392\0003\1751\SCH6048M.230
Exhibit 5
Written Communication Dated May 28, 1998 from the
Reporting Persons to the Other Shareholders of the Company
----------------------------------------------------------
AN IMPORTANT MESSAGE TO OUR FELLOW SHAREHOLDERS OF
WOOLWORTH CORPORATION...
...FROM GREENWAY PARTNERS!
ONE OF WOOLWORTH'S LARGEST SHAREHOLDERS
STOP!
Earlier this month you received a proxy statement and proxy voting
card from the management of Woolworth Corporation ("Woolworth") concerning the
Company's June 11, 1998 Annual Meeting of Shareholders. At this meeting you will
be asked to consider and vote upon a shareholder proposal sponsored by Greenway
Partners, L.P. recommending that the "...Woolworth general merchandise business
in Germany be sold and the proceeds used for a stock buyback." Our proposal
appears as item #5 in Woolworth's proxy statement dated April 28, 1998.
LOOK!
Please look for our shareholder information letter which you will
receive during the next several days. Our letter will underscore our reasons for
sponsoring this proxy proposal and discuss our ideas for the future direction of
Woolworth as a specialty retailer focusing on its core competence, which is the
sale of athletic related goods, including athletic footwear, athletic apparel
and sporting goods. We also support the proposal of a fellow shareholder --
which appears as item #6 -- requesting the Board not to reinstate the "Poison
Pill" at Woolworth without a shareholder vote.
LISTEN!
Before you sign, date and return your proxy voting card, please give
careful consideration to our message concerning the future direction of
Woolworth and to our proposal which we believe will serve to maximize
shareholder value and help revive Woolworth's sagging stock price.
For additional information, please contact Garland Associates, Inc. Tel:
212-866- 0095.
NYFS11...:\92\56392\0003\1751\SCH6048M.230
Exhibit 6
Written Communication dated June 3, 1998 from the
Reporting Persons to the Other Shareholders of the Company
----------------------------------------------------------
[Letterhead of Greenway Partners, L.P.]
June 3, 1998
Dear Fellow Woolworth Investor:
Shakespeare once asked: 'What's in a name?' and then concluded that a rose
by any other name would smell as sweet.(1) As noted in the accompanying "Ode to
Venator", we can picture the Bard as joining with those who cannot abide the
stench of the name Venator Group, Inc. We fear that even those who can quote
freely from Shakespeare have no clue as to what Venator means. To us, it sounds
horrible. We urge our fellow shareholders to vote AGAINST the name Venator by
voting AGAINST Proposal #2.
As one of the largest shareholders with over 8 million shares, we fear
there is something rotten with the state of Woolworth.(2) The 1997 Annual Report
shows operating losses before non-recurring items at Specialty Footwear (largely
composed of Kinney shoe stores) of $12 million, $9 million and $23 million for
1997, 1996, and 1995. The potpourri of store formats in the Other Specialty
category--which include Afterthoughts, The San Francisco Music Box Company and
others--had $421 million of sales in 1997 and, as a group, barely had an
operating profit. Similarly, the International General Merchandise segment
comprised primarily of Woolworth Stores in Germany, did just under $1.5 billion
in sales in 1997 and eked out an operating profit before non-recurring items of
a scant $15 million after operating losses on that line of $32 million and $33
million in the two preceding years. As far as we can tell, the true numbers for
Woolworth Germany are actually worse from a
- --------
1. See Romeo and Juliet, Act II, Scene II.
2. See Hamlet, Act I, Scene IV.
NYFS11...:\92\56392\0003\1751\SCH6048M.230
practical standpoint because Woolworth has ownership rights to virtually all of
its German real estate and does not charge itself any rent on its 365 stores in
Germany.
Management time spent focusing on these peripheral and money losing
operations draws valuable time and attention away from Woolworth's profitable
core business--the sale of athletic related goods. Management's present approach
is madness without method.(3) Instead, we believe that Woolworth should focus on
its core strength of selling athletic footwear, athletic apparel and sporting
goods. With over 3,500 athletic group stores in North America, Europe, Asia and
Australia, Woolworth is the largest retailer of athletic footwear and apparel in
the United States and an emerging power globally. Along with the Northern Group
of specialty stores, this is where the profits have been and where management's
skill and efforts should be concentrated. Woolworth should sell virtually all of
its other retail formats as quickly as possible. While we do not want
transactions at fire sale prices, we also do not want management holding out for
the last dollar and throwing good money after bad. Indeed, some formats may be
valuable gems to the right buyers.
CHANGE SPORTS AUTHORITY ACQUISITION TO CASH DEAL
We support Woolworth's acquisition of The Sports Authority in concept as a
transaction that complements Woolworth's core competence. However, after
reviewing the proposed structure of the transaction, we urge management to use
cash for the purchase instead of issuing stock. Given today's low stock price
relative to Woolworth's true value, we view the transaction as being too
dilutive to shareholders over the long run. Woolworth has relatively little long
term debt on its books, should easily be able to borrow the full cost of the
acquisition on reasonable terms, and can then pay down the debt as it sells its
non-athletic related assets.
- --------
3. See Hamlet, Act II, Scene II.
This brings us back to the specifics on the agenda for the June 11 Annual
Meeting. To send this proxy season message of discontent(4) to Woolworth
management with a view toward refocusing the company and improving its sagging
share price, we also urge our fellow shareholders to vote FOR Proposal #5 which
recommends as a first step that the "...Woolworth general merchandise business
in Germany be sold and the proceeds used for a stock buyback."
In management's answer to Proposal #5, which is sponsored by Greenway, we
think it ironic that they argue it might be harmful if potential purchasers
thought management was "under pressure from shareholders to sell the business".
Given the performance of Woolworth's stock over the past few years, this
management should feel pressure from shareholders. The Performance Graph on page
26 of the Proxy Statement shows the price of Woolworth stock badly lagging both
the S&P 500 and the S&P Retail Composite for the period ended January 31, 1998.
The situation has worsened even more since then. Despite a stock market that
continues to rise, the price of Woolworth has dropped from $21 3/4 at January
31, 1998 to $19 1/2 at June 1, 1998. Contrast that with the surging stock prices
of other retailers as shown in the accompanying graph.
Management's response also notes that Woolworth reactivated its existing
stock repurchase program "with the intention of buying each year approximately
1,000,000 shares of the Company's outstanding Common Stock to cover shares
needed for various employee benefit plans." With currently over 135 million
shares outstanding, a 1 million share annual repurchase program is hardly
measure for measure.(5)
GREENWAY DEPLORES MANAGEMENT'S REINSTATEMENT
OF POISON PILL WITHOUT SHAREHOLDER VOTE
As noted under Proposal #6, of Management's Proxy Statement, the Woolworth
"poison pill" was set to expire in April 1998. Before that date, a shareholder
submitted a proposal calling on Woolworth management to allow the pill
- --------
4. See King Richard III, Act I, Scene I.
5. See Measure for Measure.
to expire pursuant to its terms and not to reinstate the pill without approval
by holders of a majority of outstanding shares. Before even waiting to see the
results of the vote on this proposal at the June Annual Meeting, Woolworth
management adopted a new pill without a shareholder vote. This new pill does not
expire until April 2008. How sharper than a serpent's tooth it is to have a
thankless management.(6)
We believe the "poison pill" serves to insulate management from direct
shareholder accountability. Indeed, Woolworth's actions in renewing the "poison
pill" without a vote of its shareholders demonstrates such insulation. We urge
shareholders to cut through that insulation by voting FOR Proposal #6. Moreover,
if Proposal #6 receives significant shareholder support--as we believe it
will--we call on management to redeem the "poison pill" they surreptitiously
readopted.
In summary, we call on all our fellow shareholders to vote:
|X| AGAINST Proposal #2 to change the name Woolworth Corporation to
Venator Group, Inc.
|X| FOR Proposal #5 to sell Woolworth's general merchandise business in
Germany and use the proceeds for a stock buyback.
|X| FOR Proposal #6 requesting the Board not to reinstate the "Poison
Pill" without a shareholder vote.
After all, shareholders at some time should be masters of their fate. Vote
to send a message for change. Or the fault, dear shareholders, will be not in
our stars, but in ourselves, that Woolworth is undervalued.(7) THE JUNE 11
MEETING IS FAST APPROACHING. REMEMBER, ONLY THE LATEST DATED PROXY COUNTS SO YOU
CAN STILL CHANGE YOUR VOTE. SHAREHOLDERS CAN VOTE INSTANTLY BY TELEPHONE. IF YOU
HAVE QUESTIONS ON
- --------
6. King Lear, Act I, Scene IV.
7. See Julius Caesar, Act I, Scene II.
VOTING, CONTACT GARLAND ASSOCIATES, INC., OUR PROXY SOLICITORS, AT (212)
866-0095.
Very truly yours,
/s/ Alfred D. Kingsley
Alfred D. Kingsley
/s/ Gary K. Duberstein
Gary K. Duberstein
FOR MORE INFORMATION, PLEASE CONTACT US AT (212) 350-5100
OR GARLAND ASSOCIATES, INC., OUR PROXY SOLICITORS, AT (212) 866-0095
LINE GRAPH SHOWING CHANGE IN STOCK PRICES OF EACH OF WOOLWORTH CORP.
(Z), JUST FOR FEET (FEET), FINISH LINE (FINL), FOOTSTAR INC. (FTS) AND GAP INC.
(GPS) BETWEEN JUNE 1, 1997 AND JUNE 1, 1998 IS OMITTED. THE FOLLOWING TABLE SETS
FORTH THE RELEVANT DATA DEPICTED IN SUCH GRAPH:
------------------------------------------------------------------
CLOSING PRICE
- --------------------------------------------------------------------------------
Week Z FEET GPS FINL FTS
Ending
- --------------------------------------------------------------------------------
6/6/97 24 19.75 22.8525 12.375 22.875
- --------------------------------------------------------------------------------
6/13/97 26.375 18.3125 24.915 13.5 23.75
- --------------------------------------------------------------------------------
6/20/97 25.5 17.5625 25.4925 15.125 22.375
- --------------------------------------------------------------------------------
6/27/97 24.5 16.5625 25.08 14.75 24.5
- --------------------------------------------------------------------------------
7/4/97 25.25 17 25.9875 14.5625 24.75
- --------------------------------------------------------------------------------
7/11/97 24.6875 18.625 25.9875 13.75 25.0625
- --------------------------------------------------------------------------------
7/18/97 27.0625 18.125 26.3587 13.75 26
- --------------------------------------------------------------------------------
7/25/97 26.9375 19.0625 27.5962 14 26.6875
- --------------------------------------------------------------------------------
8/1/97 27.875 19.0625 28.38 13.5 26.625
- --------------------------------------------------------------------------------
8/8/97 27.8125 17.75 28.7925 13 27.25
- --------------------------------------------------------------------------------
8/15/97 25.875 15.9375 28.4212 12.25 26.9375
- --------------------------------------------------------------------------------
8/22/97 24.6875 12.625 29.37 13.625 25.0625
- --------------------------------------------------------------------------------
8/29/97 22.375 13.125 29.3287 14 24.8125
- --------------------------------------------------------------------------------
9/5/97 23 14.3125 32.34 17.125 25.0625
- --------------------------------------------------------------------------------
9/12/97 23.625 14.5 34.32 17.625 25.625
- --------------------------------------------------------------------------------
9/19/97 21.5625 14.4375 34.2787 17.5625 26.125
- --------------------------------------------------------------------------------
9/26/97 22.125 15.25 33.165 18.875 26.625
- --------------------------------------------------------------------------------
10/3/97 22.25 15.125 34.3612 18.75 27.25
- --------------------------------------------------------------------------------
10/10/97 21.375 14.75 32.5462 18.625 27.5
- --------------------------------------------------------------------------------
10/17/97 20.125 14.4375 33.1237 17.875 27.1875
- --------------------------------------------------------------------------------
10/24/97 19.6875 14 34.4025 18.375 28.4375
- --------------------------------------------------------------------------------
10/31/97 19 14.8125 35.1037 16.875 27.1875
- --------------------------------------------------------------------------------
11/7/97 20.75 16.25 35.5162 18.125 27.4375
- --------------------------------------------------------------------------------
11/14/97 20 16 35.475 17.5 27.375
- --------------------------------------------------------------------------------
11/21/97 21.3125 17.8125 38.1562 19.25 29.5625
- --------------------------------------------------------------------------------
11/28/97 21.625 16.9375 35.4337 19 30
- --------------------------------------------------------------------------------
12/5/97 21.5625 16 37.5787 16.375 30.3125
- --------------------------------------------------------------------------------
12/12/97 20.5 14.5 35.805 13.4375 29.9375
- --------------------------------------------------------------------------------
12/19/97 19.8125 12.8125 35.5575 13.375 26.3125
- --------------------------------------------------------------------------------
12/26/97 20.5 13.125 33.625 12.875 26.1875
- --------------------------------------------------------------------------------
1/2/98 20.3125 13.5 34.9375 13.875 26.875
- --------------------------------------------------------------------------------
1/9/98 19.6875 13.625 36 12.8125 25.125
- --------------------------------------------------------------------------------
1/16/98 19.9375 13.5 38.625 12.375 27.6875
- --------------------------------------------------------------------------------
1/23/98 19.9375 13.4375 38.75 12.625 26.875
- --------------------------------------------------------------------------------
1/30/98 21.75 14.25 39.0625 12.75 26.75
- --------------------------------------------------------------------------------
2/6/98 21.5625 15.4375 41.6875 14.9375 26.4375
- --------------------------------------------------------------------------------
2/13/98 23.0625 15.3125 41.125 15.0625 27.5
- --------------------------------------------------------------------------------
2/20/98 24 15.25 44.4375 15.625 29.25
- --------------------------------------------------------------------------------
2/27/98 23.75 16.9375 44.6875 16.375 30
- --------------------------------------------------------------------------------
3/6/98 23.875 18.5 44.6875 18.75 31.5625
- --------------------------------------------------------------------------------
3/13/98 24.25 19.875 47 18.4375 33
- --------------------------------------------------------------------------------
3/20/98 26.625 20.375 45.6875 18.3125 36.375
- --------------------------------------------------------------------------------
3/27/98 25.75 20.4375 45.5625 20.75 36.5
- --------------------------------------------------------------------------------
4/3/98 25.375 20.125 46 23 38
- --------------------------------------------------------------------------------
4/9/98 25.0625 20.3125 46.3125 24.25 38.5
- --------------------------------------------------------------------------------
4/17/98 24.875 22.125 46.5625 24.5 41.6875
- --------------------------------------------------------------------------------
4/24/98 23.4375 21.125 46.0625 24 39.375
- --------------------------------------------------------------------------------
5/1/98 22.875 23.5625 51.0625 25.5 40.0625
- --------------------------------------------------------------------------------
5/8/98 21.1875 22 52.1875 25 42.4375
- --------------------------------------------------------------------------------
5/15/98 20.8125 19.25 52.5625 23.5 45.0625
- --------------------------------------------------------------------------------
5/22/98 20.4375 22.125 52.9375 24.25 44.875
- --------------------------------------------------------------------------------
5/29/98 19.75 21.9375 54 23.75 44.1875
- --------------------------------------------------------------------------------
WOOLWORTH
VOTE BY TELEPHONE!
Vote your shares instantly by telephone. It's easy, just dial the toll free
telephone number and follow the simple instructions. Remember, there is no cost
to you for this call.
1. DIAL THE TOLL FREE NUMBER ON THE TOP OF THE
ENCLOSED VOTING FORM............THEN PRESS #1
Pressing #1 on your touch-tone telephone activates the automatic voting system
and prerecorded instructions guide you easily, step by step through the voting
process.
2. ENTER YOUR 12 DIGIT CONTROL NUMBER...
The 12 digit Control # is located on the upper left side of the proxy form,
immediately above the list of Directors. Entering this unique 12 digit control
number identifies you and verifies that you are the only shareholder eligible to
vote this proxy.
3. IMPORTANT
PRESS #2 TO VOTE FOR EACH ITEM SEPARATELY
4. ENTER YOUR PROXY VOTING INSTRUCTIONS...
GREENWAY RECOMMENDS:
AGAINST PROPOSAL #2 (NAME CHANGE)
FOR PROPOSAL #5 (WOOLWORTH GERMANY)
FOR PROPOSAL #6 (POISON PILL)
REMEMBER, ONLY YOUR LATEST DATED PROXY VOTE COUNTS!
If you need assistance in casting your ballot, just call our
proxy solicitor Garland Associates, Inc. at 212-866-0095.
WHAT'S IN A NAME?
TO CHANGE THE NAME,
OR NOT TO CHANGE THE NAME: [PICTURE OF WILLIAM SHAKESPEARE]
THAT IS THE QUESTION:
ANSWER: A RESOUNDING "NO!"
VENATOR ONLY RHYMES WITH
PREDATOR!
[LOGO OF WOOLWORTH ODE TO VENATOR
CORPORATION]
(A SONNET TO VOTE "NO" IN IAMBIC PENTAMETER)
[LOGO OF SPORTS O, WHAT'S THE USE OF NAMES LIKE "VENATOR"?
AUTHORITY] FOR MOST OF US, WE DON'T KNOW WHAT IT MEANS.
A DINOSAUR? PERHAPS A PREDATOR? PERHAPS THE MEANING'S
KNOWN BY COLLEGE DEANS. SOME OTHER COMPANIES HAVE NAMES
LIKE THIS. ALL SUFFERED MARKET BLOWS TO THEIR SHARE
PRICE. BAD NAMES WITH "X", ALLEGIS, UNISYS. WITH
"VENATOR", TELL MANAGEMENT: "THINK TWICE!"
KEEP WOOLWORTH. MAYBE SPORTS AUTHORITY.
GIVE US A NAME WITH KNOWN IDENTITY.
VOTE AGAINST PROPOSAL #2