sec document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
SCHEDULE 13D
(Rule 13d-101)
(Amendment No. 6)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-
1(A) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a)
Steven Madden, LTD.
-------------------
(Name of Issuer)
Common Stock, Par Value $0.0001 Per Share
-----------------------------------------
(Title of Class of Securities)
556269108
---------
(CUSIP Number)
Mr. James A. Mitarotonda
c/o Barington Companies Equity Partners, L.P.
888 Seventh Avenue, 17th Floor
New York, NY 10019
(212) 974-5700
--------------
(Name, Address and Telephone Number of
Person Authorized to Receive Notices
and Communications)
February 2, 2005
----------------
(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 which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f), or 13d-1(g), check the following
box: |_|.
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Barington Companies Equity Partners, L.P. 13-4088890
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) /_/
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS WC
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 288,937
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 288,937
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
288,937
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.21%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
2
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Barington Companies Investros, LLC 13-4126527
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS 00
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 288,937
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 288,937
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
288,937
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.21%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
00
--------------------------------------------------------------------------------
3
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
James Mitarotonda
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS 00
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 337,472
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 337,472
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
337,472
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.58%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
4
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Barington Companies Offshore Fund, Ltd. (BVI)
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS WC
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
British Virgin Islands
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 48,535
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 48,535
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
48,535
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.37%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
00
--------------------------------------------------------------------------------
5
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Barington Companies Advisors, LLC 20-0327470
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS 00
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 48,535
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 48,535
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
48,535
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.37%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
00
--------------------------------------------------------------------------------
6
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Barington Capital Group, L.P. 13-3635132
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS 00
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
New York
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 337,472
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 337,472
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
337,472
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.58%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
7
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
LNA Capital Corp. 13-3635168
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS 00
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 337,472
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 337,472
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
337,472
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.58%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
C0
--------------------------------------------------------------------------------
8
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Parche, LLC 20-0870632
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS WC
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 105,496
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 105,496
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
105,496
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.81%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
00
--------------------------------------------------------------------------------
9
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Admiral Advisors, LLC 37-1484525
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS 00
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 659,348
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 659,348
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
659,348
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.05%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
00
--------------------------------------------------------------------------------
10
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Ramius Capital Group, LLC 13-3937658
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS 00
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 659,348
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 659,348
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
659,348
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.05%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
00
--------------------------------------------------------------------------------
11
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
C4S & Co., LLC 13-3946794
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS 00
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 659,348
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 659,348
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
659,348
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.05%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
00
--------------------------------------------------------------------------------
12
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Starboard Value & Opportunity Fund, LLC 37-1484524
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS WC
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 553,852
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 553,852
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
553,852
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.24%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
00
--------------------------------------------------------------------------------
13
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Peter A. Cohen
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS 00
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF none
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY 659,348
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON none
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
659,348
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
659,348
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.05%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
14
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Morgan B. Stark
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS 00
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF none
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY 659,348
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON none
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
659,348
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
659,348
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.05%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
15
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Jeffrey M. Solomon
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS 00
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF none
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY 659,348
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON none
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
659,348
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
659,348
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.05%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
16
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Thomas W. Strauss
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS 00
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF none
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY 659,348
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON none
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
659,348
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
659,348
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.05%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
17
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
RJG Capital Partners, LP 20-0133443
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS WC
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 8,600
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 8,600
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,600
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.066%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
18
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
RJG Capital Management, LLC 20-0027325
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS 00
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 8,600
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 8,600
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,600
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.066%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
00
--------------------------------------------------------------------------------
19
SCHEDULE 13D
CUSIP NO. 556269108
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Ronald Gross
--------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) /X/
(b) |_|
--------------------------------------------------------------------------------
3) SEC USE ONLY
--------------------------------------------------------------------------------
4) SOURCE OF FUNDS 00
--------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
7) SOLE VOTING POWER
NUMBER OF 8,600
SHARES --------------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY none
EACH --------------------------------------------------------
REPORTING 9) SOLE DISPOSITIVE POWER
PERSON 8,600
WITH --------------------------------------------------------
10) SHARED DISPOSITIVE POWER
none
--------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,600
--------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.066%
--------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
20
This Amendment No. 6 amends and supplements the Schedule 13D filed with the
Securities and Exchange Commission on July 30, 2004, as amended by that certain
Amendment No. 1 filed on November 12, 2004, that certain Amendment No. 2 filed
on November 18, 2004, that certain Amendment No. 3 filed on December 13, 2004,
that certain Amendment No. 4 filed on December 20, 2004 and that certain
Amendment No. 5 filed on January 3, 2005 (together, the "Statement"), by and on
behalf of Barington Companies Equity Partners, L.P., Barington Companies
Investors, LLC, James Mitarotonda, Barington Companies Offshore Fund, Ltd.
(BVI), Barington Companies Advisors, LLC, Barington Capital Group, L.P., LNA
Capital Corp., Parche, LLC, Starboard Value & Opportunity Fund, LLC, Admiral
Advisors, LLC, Ramius Capital Group, LLC, C4S & Co., LLC, Peter A. Cohen, Morgan
B. Stark, Jeffrey M. Solomon, Thomas W. Strauss, RJG Capital Partners, LP, RJG
Capital Management, LLC, and Ronald Gross (each, a "Reporting Entity" and,
collectively, the "Reporting Entities") with respect to the common stock, par
value $0.0001 per share, of Steven Madden, Ltd., a Delaware corporation (the
"Company"). The principal executive offices of the Company are located at 52-16
Barnett Avenue, Long Island City, New York 11104.
Item 4. PURPOSE OF TRANSACTION.
The information contained in Item 4 of the Statement is hereby supplemented
as follows:
On February 2, 2005, the Reporting Entities entered into a Settlement Agreement
with the Company (the "Settlement Agreement"), a copy of which is attached as an
exhibit hereto and incorporated herein by reference, in which, among other
things, (i) the Company agreed to distribute not less than $25 million in 2005
and $10 million in 2006 to stockholders through cash dividends, share
repurchases and/or self-tender offers, (ii) the Company agreed to appoint one of
its independent directors as lead director and to add a new independent director
to its Board of Directors, (iii) the Board of Directors of the Company agreed to
meet with representatives of the Reporting Entities on a quarterly basis to
engage in an open dialogue, (iv) the Company agreed not to implement or
otherwise adopt a "classified" or "staggered" board during the term of the
Settlement Agreement and (v) the Reporting Entities agreed to abide by certain
standstill provisions for a two year period; provided, however, that the
Settlement Agreement stipulates that the Reporting Entities shall be permitted
to run a candidate for election to the Board of Directors as a "short slate" in
opposition to the Board's nominees for the Company's 2006 annual meeting of
stockholders if the Company fails to meet a specified performance threshold set
forth in the Settlement Agreement.
On February 2, 2005, the Reporting Entities also agreed with the Company on
the issuance of a joint press release announcing the Settlement Agreement, a
copy of which is attached as an exhibit hereto and incorporated herein by
reference.
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDING OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
The information contained in Item 6 of the Statement is hereby supplemented
as follows:
21
On February 2, 2005, the Reporting Entities entered into a Settlement
Agreement with the Company, as described in Item 4, a copy of which is attached
as an exhibit hereto and incorporated herein by reference.
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
Item 7 is hereby amended to add the following exhibits:
99.7 Settlement Agreement among Steven Madden, Ltd., Barington Companies
Equity Partners, L.P., Barington Companies Investors, LLC, James
Mitarotonda, Barington Companies Offshore Fund, Ltd., Barington
Companies Advisors, LLC, Barington Capital Group, L.P., LNA Capital
Corp., Parche, LLC, Admiral Advisors, LLC, Ramius Capital Group, LLC,
C4S & Co., LLC, Peter A. Cohen, Morgan B. Stark, Jeffrey M. Solomon,
Thomas W. Strauss, Starboard Value & Opportunity Fund, LLC, RJG
Capital Partners, LP, RJG Capital Management, LLC and Ronald Gross
dated February 2, 2005.
99.8 Joint Press Release dated February 2, 2005.
22
SIGNATURES
After reasonable inquiry and to the best knowledge and belief of the
undersigned, the undersigned certify that the information set forth in this
Statement is true, complete and correct.
Dated: February 3, 2005
BARINGTON COMPANIES EQUITY PARTNERS, L.P.
By: Barington Companies Investors, LLC,
its general partner
By: /s/ James A. Mitarotonda
---------------------------------------
Name: James A. Mitarotonda
Title: Managing Member
BARINGTON COMPANIES INVESTORS, LLC
By: /s/ James A. Mitarotonda
---------------------------------------
Name: James A. Mitarotonda
Title: Managing Member
/s/ James A. Mitarotonda
-----------------------------------------
James A. Mitarotonda
BARINGTON COMPANIES OFFSHORE
FUND, LTD. (BVI)
By: /s/ James A. Mitarotonda
---------------------------------------
Name: James A. Mitarotonda
Title: President
BARINGTON COMPANIES ADVISORS, LLC
By: Barington Capital Group, L.P., its
managing member
By: LNA Capital Corp., its general
partner
23
By: /s/ James A. Mitarotonda
---------------------------------------
Name: James A. Mitarotonda
Title: President and Chief Executive Officer
BARINGTON CAPITAL GROUP, L.P.
By: LNA Capital Corp., its general
partner
By: /s/ James A. Mitarotonda
---------------------------------------
Name: James A. Mitarotonda
Title: President and Chief Executive Officer
LNA CAPITAL CORP.
By: /s/ James A. Mitarotonda
---------------------------------------
Name: James A. Mitarotonda
Title: President and Chief Executive Officer
PARCHE, LLC
By: Admiral Advisors, LLC, its managing
member
By: /s/ Jeffrey M. Solomon
-----------------------------------
Name: Jeffrey M. Solomon
Title: Authorized Signatory
STARBOARD VALUE & OPPORTUNITY FUND, LLC
By: Admiral Advisors, LLC, its managing
member
By: /s/ Jeffrey M. Solomon
-----------------------------------
Name: Jeffrey M. Solomon
Title: Authorized Signatory
24
ADMIRAL ADVISORS, LLC
By: Ramius Capital Group, LLC, its
sole member
By: /s/ Jeffrey M. Solomon
-----------------------------------
Name: Jeffrey M. Solomon
Title: Authorized Signatory
RAMIUS CAPITAL GROUP, LLC
By: C4S & Co., LLC, its managing member
By: /s/ Jeffrey M. Solomon
-----------------------------------
Name: Jeffrey M. Solomon
Title: Managing Member
C4S & CO., LLC
By: /s/ Jeffrey M. Solomon
-----------------------------------
Name: Jeffrey M. Solomon
Title: Managing Member
/s/ Peter A. Cohen
--------------------------------
Peter A. Cohen
/s/ Morgan B. Stark
--------------------------------
Morgan B. Stark
/s/ Jeffrey M. Solomon
--------------------------------
Jeffrey M. Solomon
/s/ Thomas W. Strauss
--------------------------------
Thomas W. Strauss
25
RJG CAPITAL PARTNERS, LP
By: RJG Capital Management, LLC,
its general partner
By: /s/ Ronald J. Gross
------------------------------
Name: Ronald J. Gross
Title: Managing Member
RJG CAPITAL MANAGEMENT, LLC
By: /s/ Ronald J. Gross
------------------------------
Name: Ronald J. Gross
Title: Managing Member
/s/ Ronald J. Gross
----------------------------------
Ronald J. Gross
26
EXHIBIT 99.7
SETTLEMENT AGREEMENT
SETTLEMENT AGREEMENT, dated this 2nd day of February, 2005 ("Agreement"),
among Barington Companies Equity Partners, L.P., Barington Companies Investors,
LLC, James Mitarotonda, Barington Companies Offshore Fund, Ltd. (BVI), Barington
Companies Advisors, LLC, Barington Capital Group, L.P., LNA Capital Corp.,
Parche, LLC, Starboard Value & Opportunity Fund, LLC, Admiral Advisors, LLC,
Ramius Capital Group, LLC, C4S & Co., LLC, Peter A. Cohen, Morgan B. Stark,
Jeffrey M. Solomon, Thomas W. Strauss, RJG Capital Partners, LP, RJG Capital
Management, LLC and Ronald Gross (the foregoing individuals and entities being
collectively referred to herein as the "Barington Group"), and Steven Madden,
Ltd., a Delaware corporation (the "Company").
WHEREAS, the Barington Group (i) has publicly stated that it may solicit
proxies for the election of its own opposition slate of nominees (the "Proxy
Solicitation") to the Company's Board of Directors (the "Board"), and (ii) has
taken certain actions in furtherance thereof; and
WHEREAS, the Company and the members of the Barington Group have determined
that the interests of the Company and its stockholders would be best served by
avoiding the substantial expense, disruption and adverse publicity that would
result from the Proxy Solicitation.
NOW, THEREFORE, in consideration of the foregoing premises and the
respective representations, warranties, covenants, agreements and conditions
hereinafter set forth, and, intending to be legally bound hereby, the parties
hereby agree as follows:
1. NEW DIRECTOR; 2005 ANNUAL MEETING; RELATED MATTERS.
(a) The Nominating/Corporate Governance Committee will, acting in its
sole discretion and subject to its fiduciary duties, seek at least one
additional candidate for election to the Board who has a record of financial
and/or retail experience which is generally appropriate for the Company's
business and who satisfies the applicable criteria to serve as an "independent
director" (as such term is defined under Nasdaq Market Rule 4200 (15)(A)) on the
Company's Board and who has not, within the past five years, had a business
relationship with Steven Madden, Jamieson A. Karson or the Company (the
"Additional Independent Director"). The Company will use its reasonable best
efforts to complete all necessary steps sufficiently in advance of the mailing
of the Company's proxy statement for the 2005 Annual Meeting of Stockholders
(the "2005 Annual Meeting") such that the Additional Independent Director will
be included in the proxy statement as a nominee for election to the Company's
Board at the 2005 Annual Meeting; provided however, that if such Additional
Independent Director is not included in such proxy statement, such Additional
Independent Director shall, in any event, be elected to the Board no later than
27
June 1, 2005. The Persons nominated by the Board to stand for election to the
Board in accordance with this Section 1(a), and who are included in the 2005
Proxy Statement, are referred to herein as the "2005 Nominees."
(b) The members of the Barington Group and their Affiliates and
Associates (as such terms are defined in Section 14) shall vote, and shall cause
their respective Affiliates and Associates to vote, all Voting Securities (as
such term is defined in Section 14) which they are entitled to vote at the 2005
Annual Meeting in favor of the election of each of the 2005 Nominees.
(c) The Barington Group hereby withdraws its demand for a shareholder
list and related information dated December 31, 2004. The Barington Group will
promptly file an amendment to the Schedule 13D regarding the Common Stock filed
with the SEC on July 30, 2004, as amended (the "Schedule 13D"), reporting the
entry into this Agreement, amending applicable items to conform to its
obligations hereunder and appending this Agreement and the Press Release (as
hereinafter defined) as an Exhibits thereto.
(d) The Company and the Board will request that senior management
consult at least quarterly with Harold D. Kahn to review the Company's business,
operations, strategic plans and marketing activities with a view to seeking the
benefits of his knowledge, experience and expertise in the retail and fashion
industries. Nothing contained herein is intended to cause Mr. Kahn to not be
deemed to be an "independent director."
(e) The "independent directors" of the board shall promptly elect one
such director to be a lead "independent director" and shall cause the
"independent directors" of the Board to hold regular meetings (no less
frequently than quarterly). The lead independent director shall: (i) work
closely with the chairman of the board on approving the information flow to the
board and developing meeting agendas and meeting schedules; (ii) chair board
meetings in the absence of the chairman of the board; (iii) oversee meetings of
the non-management directors; (iv) serve as the principal liaison between the
independent directors and the chairman of the board; and (v) take a leading role
in the board evaluation process.
2. TERMINATION DATE.
This Agreement shall remain in full force and effect and shall be fully
binding on the parties hereto in accordance with the provisions hereof until the
second anniversary of the date set forth above as the date of the Agreement (the
"Termination Date"). Nothing contained in this Agreement shall limit any member
of the Barington Group or their Associates or Affiliates from taking any of the
actions otherwise prohibited in this Agreement in connection with any meeting of
the Company's stockholders in 2007, including without limitation, nominating
directors, requesting a shareholder list and related information, making public
filings or announcements or taking any other action, in each case, related to
the solicitation of proxies at any 2007 meeting of the Company's stockholders if
such action occurs no more than two weeks prior to the earliest date on which a
28
stockholder is permitted to give effective notice of its intention to nominate
candidates for election at the Company's Annual Meeting of Stockholders to be
held in 2007. To the extent that the Barington Group utilizes the permission
afforded by the preceding sentence, the Company shall not be prohibited from
responding publicly thereto.
3. STANDSTILL.
(a) Subject to Section 3(b) hereof, each member of the Barington
Group jointly and severally agrees that during the period commencing on the date
hereof and ending on the Termination Date, without the prior written consent of
the Board specifically expressed in a written resolution adopted by a majority
vote of the entire Board, he, she or it will not, and will cause each of his,
her or its Affiliates, Associates, employees, agents and other Persons acting on
his, her or its behalf not to:
(i) acquire, offer or propose to acquire, or agree to acquire
(except by way of stock dividends or other distributions or offerings made
available to holders of Voting Securities generally on a pro rata basis,
provided that any such securities so received shall be subject to the provisions
hereof), directly or indirectly, whether by purchase, tender or exchange offer,
through the acquisition of control of another Person (as such term is defined in
Section 14), by joining a partnership, limited partnership, syndicate or other
"group" (within the meaning of Section 13(d)(3) of the Securities Exchange Act
of 1934, as amended (the "Exchange Act")) or otherwise, any Voting Securities,
if after giving effect to such acquisition the Barington Group (by itself or
with any other Person with whom it has any agreement, understanding or
arrangement with respect to Voting Securities) would beneficially own more than
9.9% of the outstanding Voting Securities; provided, however, no sales by any
member of the Barington Group shall be required if the increase in the
beneficial ownership of Voting Securities over 9.9% of the outstanding Voting
Securities results exclusively from a reduction in the number of outstanding
Voting Securities by reason of the Company's repurchase of Common Stock;
provided, that no member of the Barington Group acquires any additional Voting
Securities following disclosure by the Company of information indicating that
the Barington Group beneficially owns in excess of 9.9% of the outstanding
Voting Securities. For the purposes of computing the beneficial ownership of the
Barington Group at the time of any purchase, the number of outstanding Voting
Securities shall be determined by the latest available Company filing with the
Securities and Exchange Commission (the "SEC").
(ii) engage, or in any way participate, directly or
indirectly, in any "solicitation" (as such term is defined in Rule 14a-1(l)
promulgated by the SEC under the Exchange Act) of proxies or consents (whether
or not relating to the election or removal of directors), seek to advise,
encourage or influence any Person with respect to the voting of any Voting
Securities; initiate, propose or otherwise "solicit" (as such term is defined in
Rule 14a-1(l) promulgated by the SEC under the Exchange Act) stockholders of the
Company for the approval of stockholder proposals whether made pursuant to Rule
14a-8 or Rule 14a-4 under the Exchange Act or otherwise; induce or attempt to
induce any other Person to initiate any such stockholder proposal; or otherwise
communicate with the Company's stockholders or others pursuant to Rule
29
14a-1(l)(2)(iv) under the Exchange Act; or participate in, or take any action
pursuant to, any "shareholder access" proposal which may be adopted by the SEC,
whether in accordance with proposed Rule 14a-11 or otherwise;
(iii) except as required pursuant to Item 4 of Schedule 13D in
connection with a Disposition (as hereinafter defined) of Voting Securities
expressly permitted under Section 3(b) of this Agreement, seek, propose or make
any statements with respect to, any merger, consolidation, business combination,
tender or exchange offer, sale or purchase of assets, sale or purchase of
securities, dissolution, liquidation, restructuring, recapitalization or similar
transactions involving the Company or any of its Affiliates, PROVIDED that the
Barington Group may publicly express its opinion with respect to any such
announced merger, consolidation or business combination;
(iv) form, join or in any way participate in any "group"
(within the meaning of Section 13(d)(3) of the Exchange Act) with respect to any
Voting Securities, other than a "group" that includes all or some lesser number
of the Persons identified as "Reporting Persons" in the Schedule 13D, but does
not include any other members who are not currently identified as Reporting
Persons;
(v) deposit any Voting Securities in any voting trust or
subject any Voting Securities to any arrangement or agreement with respect to
the voting of any Voting Securities, except as expressly set forth in this
Agreement;
(vi) otherwise act, alone or in concert with others, to
control or seek to control or influence or seek to influence the management, the
Board or policies of the Company, except as otherwise expressly permitted in
this Agreement;
(vii) seek, alone or in concert with others, (a) to call a
meeting of stockholders or solicit consents from stockholders, (b) to obtain
representation on the Board, or (c) to effect the removal of any member of the
Board;
(viii) make any proposal (including publicly disclose or discuss
any proposal) or enter into any discussion regarding any of the foregoing, or
make any proposal, statement or inquiry, or disclose any intention, plan or
arrangement (whether written or oral) inconsistent with the foregoing, or make
or disclose any request to amend, waive or terminate any provision of this
Agreement;
(ix) have any discussions or communications, or enter into any
arrangements, understanding or agreements (whether written or oral) with, or
advise, finance, assist or encourage, any other Person in connection with any of
the foregoing, or make any investment in or enter into any arrangement with, any
other Person that engages, or offers or proposes to engage, in any of the
foregoing; or
(x) take or cause or induce others to take any action
inconsistent with any of the foregoing.
30
(b) If the Company's announced, actual basic earnings per share for
the three quarters ended September 30, 2005 fail to exceed 90% of the Expected
Per Share Earnings Level (as hereinafter defined) for such nine-month period,
the Barington Group shall be relieved from compliance with the provisions of
Section 3(a) hereof solely to the extent necessary to permit it to nominate a
single candidate for election to the Board as a director to run as a "short
slate" against the Board's slate of nominees for the Company's 2006 Annual
Meeting of Stockholders (the "2006 Annual Meeting") and to solicit proxies in
support of such candidate for election to the Board, as well as to request a
shareholder list and related information and make any and all filings and/or
announcements necessary in the sole discretion of the Barington Group, in
connection with such nomination, and to vote all Voting Securities then
beneficially owned in favor of the election of such candidate to the Board and
against one nominee on the slate nominated by the Board for the 2006 Annual
Meeting. The term Expected Per Share Earnings Level means for all purposes
herein the product of (1) times (2) where (1) is 65% and (2) is the lower end of
the Estimated Per Share Earnings Range (as hereinafter defined). The term
"Estimated Per Share Earnings Range" shall mean the range of full year estimated
earnings per share which the Company will publicly announce at its next
scheduled quarterly conference call scheduled to occur on March 1, 2005.
4. DISPOSITIONS OF VOTING SECURITIES.
(a) No member of the Barington Group will, and no such member will
permit his or her or its Affiliates and Associates to, directly or indirectly,
sell, assign, transfer, grant an option with respect to or otherwise dispose of
any interest in (or enter into an agreement or understanding with respect to the
foregoing) (collectively, a "Disposition") any Voting Securities, provided,
however, that the foregoing limitation shall not prohibit any Disposition which
complies with Section 4(b) hereof (a "Permitted Disposition").
(b) The term "Permitted Disposition" shall mean and include any of
the following: (i) any Disposition to or through a nationally recognized
broker-dealer (a "Block Positioner") so long as such Block Positioner agrees
that it shall not, either as principal or agent, make any Disposition to a
Person who, after giving effect to such Disposition, would, together with its
Affiliates, beneficially own 5% or more of the outstanding Voting Securities
unless such Person is either a reporting person with respect to the Voting
Securities on Schedule 13G or is an institutional investor eligible to use such
Schedule 13G; (ii) a Disposition pursuant to a transaction effected on Nasdaq,
any inter-dealer quotation system or on the floor of a nationally recognized
securities exchange in which no member of the Barington Group has any knowledge
that the purchaser is a Person who, after giving effect to such Disposition,
would, together with its Affiliates, beneficially own 5% or more of the
outstanding Voting Securities; or (iii) Disposition pursuant to a tender or
exchange offer.
(c) If any member of the Barington Group or any Affiliate of any
member of the Barington Group acquires any Voting Securities in violation of
this Agreement, it will immediately dispose of such Voting Securities to Persons
which are not members of the Barington Group or Affiliates thereof in a manner
31
permitted by Section 4(b) hereof, provided that the Company may also pursue any
other available remedy to which it may be entitled as a result of such
violation.
5. COMMON STOCK REPURCHASE PROGRAM; DIVIDENDS. During the 12-month period
beginning February 1, 2005, the Company will cause a distribution by the Company
of not less than $25,000,000 in cash to the holders of Common Stock through any
combination of cash dividends, repurchases of Common Stock in the market and one
or more self-tender offers to the holders of Common Stock by the Company. During
the 12-month period beginning February 1, 2006, the Company will cause a
distribution of not less than $10,000,000 in cash to the holders of Common Stock
through any combination of cash dividends, repurchases of Common Stock in the
market one or more self-tender offers to the holders of Common Stock by the
Company. All such dividends, share repurchases and self-tender offers shall be
commenced, implemented or suspended at any time or from time to time, at the
discretion of the Board without prior notice and shall be made in whatever
manner the Board approves in its sole discretion and subject to compliance with
applicable rules and regulations of the SEC and Nasdaq, general economic and
market conditions and the Board's fiduciary duty in light of the Company's
business and financial condition obtaining at the relevant time.
6. ACCESS TO BOARD. On a quarterly basis (or such other more frequent
basis as the Board determines in its sole discretion) occurring reasonably
following the Company's announcement of its quarterly results (beginning within
30 days of the date hereof and thereafter following the Company's announcement
of its results for the first quarter of 2005), no more than two designated
representatives (the "Designated Representatives") of the Barington Group shall
be afforded an opportunity to meet with the Board. Prior to the first such
meeting the Barington Group shall notify the Chairman of the Board of the
Company of the identity of its Designated Representatives and any specific
topics they may wish to address with the Board. By notice to the Company, the
Designated Representatives may be changed from time to time. Such meetings shall
occur on a date that is mutually convenient for the Board and the Designated
Representatives and the Company shall use its reasonable best efforts to
schedule such meetings within three weeks of receiving such notice of the
Designated Representatives. Such meetings may include participation by members
of the Board by means of a conference telephone or video conference telephone
hook-up that would satisfy the Company's by-law requirement for a Board meeting,
provided, however, a majority of directors shall be present in person at such
meetings.
7. ANTI-TAKEOVER MEASURES. During the period commencing on the date
hereof and ending on the Termination Date, the Company agrees that it shall not:
(i) implement or otherwise adopt a "classified" or "staggered" board; or (ii)
amend or otherwise modify the Rights Agreement by and between the Company and
American Stock Transfer & Trust Company dated November 14, 2001, in any manner
adverse to a potential acquirer (this provision shall in no way prevent the
Company from redeeming the rights issued pursuant to the Rights Agreement).
8. REPRESENTATIONS AND WARRANTIES OF THE BARINGTON GROUP.
32
The members of the Barington Group jointly and severally represent and
warrant as follows:
(a) Each member of the Barington Group has the power and
authority to execute, deliver and carry out the terms and provisions of this
Agreement and to consummate the transactions contemplated hereby.
(b) This Agreement has been duly and validly authorized,
executed, and delivered by each member of the Barington Group, constitutes a
valid and binding obligation and agreement of each such member, and is
enforceable against each such member in accordance with its terms.
(c) The members of the Barington Group, together with their
Affiliates and Associates, beneficially own, directly or indirectly, an
aggregate of 1,005,420 shares of Common Stock of the Company as set forth by
beneficial owner and amount on Schedule A hereto and such shares of Common Stock
constitute all of the Voting Securities of the Company beneficially owned by the
members of the Barington Group and their Affiliates and Associates.
9. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby
represents and warrants as follows:
(a) The Company has the corporate power and authority to
execute, deliver and carry out the terms and provisions of this Agreement and to
consummate the transactions contemplated hereby.
(b) This Agreement has been duly and validly authorized,
executed and delivered by the Company, constitutes a valid and binding
obligation and agreement of the Company, and is enforceable against the Company
in accordance with its terms.
10. SPECIFIC PERFORMANCE. Each of the members of the Barington Group, on
the one hand, and the Company, on the other hand, acknowledges and agrees that
irreparable injury to the other party hereto would occur in the event any of the
provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached and that such injury would not be
adequately compensable in damages. It is accordingly agreed that the members of
the Barington Group, on the one hand, and the Company, on the other hand (the
"Moving Party"), shall each be entitled to specific enforcement of, and
injunctive relief to prevent any violation of, the terms hereof and the other
party hereto will not take action, directly or indirectly, in opposition to the
Moving Party seeking such relief on the grounds that any other remedy or relief
is available at law or in equity.
11. PRESS RELEASE. Immediately following the execution and delivery of
this Agreement, the Company and the Barington Group shall issue the joint press
release attached hereto as Schedule B (the "Press Release"). None of the parties
hereto will make any public statements (including in any filing with the SEC or
any other regulatory or governmental agency, including any stock exchange) that
33
are inconsistent with, or otherwise contrary to, the statements in the Press
Release issued pursuant to this Section 11. Following the date hereof, neither
the Barington Group, nor any of its Affiliates or Associates, shall issue or
cause the publication of any press release or other public announcement with
respect to this Agreement, the Company, its management or the Board or the
Company's business without prior written consent of the Company, provided,
however, that the Barington Group may file an amendment to the Schedule 13D in
accordance with Section 1(c) of this Agreement and may otherwise make such
public announcements as its counsel reasonably determines are required by law as
a result of a statement, fact or development that itself does not breach or
conflict with the terms of this Agreement so long as the Company is afforded
reasonable advance notice thereof and an opportunity to comment on the form and
substance thereof.
12. EXPENSES. Within 10 business days following receipt of reasonably
satisfactory documentation thereof, the Company will reimburse the Barington
Group for its reasonable, documented out-of-pocket fees and expenses incurred in
connection with its Schedule 13D filings, its putative Proxy Solicitation and
the negotiation and execution of this Agreement and all related activities and
matters, provided such reimbursement shall not exceed $150,000 in the aggregate.
13. NO WAIVER. Any waiver by either the Representative (as hereinafter
defined) or the Company of a breach of any provision of this Agreement shall not
operate as or be construed to be a waiver of any other breach of such provision
or of any breach of any other provision of this Agreement. The failure of either
the Representative or the Company to insist upon strict adherence to any term of
this Agreement on one or more occasions shall not be considered a waiver or
deprive that party of the right thereafter to insist upon strict adherence to
that term or any other term of this Agreement.
14. CERTAIN DEFINITIONS. As used in this Agreement, (a) the term "Person"
shall mean any individual, partnership, corporation, group, syndicate, trust,
government or agency, or any other organization, entity or enterprise; (b) the
terms "Affiliates" and "Associates" shall have the meanings set forth in Rule
12b-2 under the Exchange Act and shall include Persons who become Affiliates or
Associates of any Person subsequent to the date hereof; and (c) the term "Voting
Securities" shall mean any securities of the Company entitled, or which may be
entitled, to vote (whether or not entitled to vote generally in the election of
directors), or securities convertible into or exercisable or exchangeable for
such securities, whether or not subject to passage of time or other
contingencies.
15. SUCCESSORS AND ASSIGNS. All the terms and provisions of this Agreement
shall inure to the benefit of and shall be enforceable by the successor and
assigns of the parties hereto.
16. SURVIVAL OF REPRESENTATIONS. All representations and warranties made
by the parties in this Agreement or pursuant hereto shall survive until the
Termination Date.
34
17. ENTIRE AGREEMENT; AMENDMENTS. This Agreement and the Schedules hereto
contain the entire understanding of the parties hereto with respect to its
subject matter. There are no restrictions, agreements, promises,
representations, warranties, covenants or undertakings other than those
expressly set forth herein. This Agreement may be amended only by a written
instrument duly executed by the parties hereto or their respective successors or
assigns.
18. HEADINGS. The section headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.
19. NOTICES. All notices, demands and other communications to be given or
delivered under or by reason of the provisions of this Agreement shall be in
writing and shall be deemed to have been given (a) when delivered by hand (with
written confirmation of receipt), (b) upon sending if sent by e-mail or
facsimile (with such communication to be in PDF format), with electronic
confirmation of sending; provided, however, that a copy is sent on the same day
by registered mail, return receipt requested, in each case to the appropriate
mailing and e-mail or facsimile addresses set forth below (or to such other
mailing, facsimile and e-mail addresses as a party may designate by notice to
the other parties in accordance with this provision), (c) one (1) day after
being sent by nationally recognized overnight carrier to the addresses set forth
below (or to such other mailing addresses as a party may designate by notice to
the other parties in accordance with this Section 19) or (d) when actually
delivered if sent by any other method that results in delivery (with written
confirmation of receipt):
35
If to the Company:
Steven Madden, Ltd.
52-16 Barnett Avenue
Long Island City, New York 11104
Attention: Jamieson A. Karson
Telecopy: 718 308 8957
Email: jamiekarson@SteveMadden.com
with a copy to:
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, New York 10036-6522
Attention: J. Michael Schell, Esq.
Jonathan J. Lerner, Esq.
Telecopy: 212 735 2000
Email: mschell@skadden.com
jlerner@skadden.com
and
If to the Barington Group:
Barington Companies Equity Partners, L.P.
888 Seventh Avenue, 17th Floor
New York, NY 10019
Attention: James A. Mitarotonda
Telecopy: 212 586 7684
Email: jmitarotonda@barington.com
with a copy to:
Olshan Grundman Frome Rosenzweig & Wolosky LLP
65 East 55th Street
New York, New York 10022
Attention: Steven Wolosky, Esq.
Telecopy: (212) 451-2222
Email: swolosky@olshanlaw.com
or to such other address as the Person to whom notice is given may have
previously furnished to the others in writing in the manner set forth above.
20. GOVERNING LAW. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of New York without reference
to the conflict of laws principles thereof.
36
21. COUNTERPARTS. This Agreement may be executed in counterparts, each of
which shall be an original, but all of which together shall constitute one and
the same Agreement.
22. BARINGTON GROUP REPRESENTATIVE. Each member of the Barington Group
hereby irrevocably appoints James Mitarotonda as such member's attorney-in-fact
and representative (the "Representative"), in such member's place and stead, to
do any and all things and to execute any and all documents and give and receive
any and all notices or instructions in connection with this Agreement and the
transactions contemplated hereby. The Company shall be entitled to rely, as
being binding on each member of the Barington Group, upon any action taken by
the Representative or upon any document, notice, instruction or other writing
given or executed by the Representative.
23. NO ADMISSION. Nothing contained herein shall constitute an admission
by any party hereto of liability or wrongdoing.
37
IN WITNESS WHEREOF, and intending to be legally bound hereby, each of
the undersigned parties has executed or caused this Agreement to be executed on
the date first above written.
STEVEN MADDEN, LTD.
By: /s/ Jamieson A. Karson
----------------------------------------
Name: Jamieson A. Karson
Title: Chief Executive Officer
BARINGTON COMPANIES EQUITY PARTNERS, L.P.
By: Barington Companies Investors, LLC,
its general partner
By: /s/ James A. Mitarotonda
---------------------------------------
Name: James A. Mitarotonda
Title: Managing Member
BARINGTON COMPANIES INVESTORS, LLC
By: /s/ James A. Mitarotonda
---------------------------------------
Name: James A. Mitarotonda
Title: Managing Member
/s/ James A. Mitarotonda
-----------------------------------------
James A. Mitarotonda
BARINGTON COMPANIES OFFSHORE
FUND, LTD. (BVI)
By: /s/ James A. Mitarotonda
---------------------------------------
Name: James A. Mitarotonda
Title: President
BARINGTON COMPANIES ADVISORS, LLC
38
By: Barington Capital Group, L.P., its
managing member
By: LNA Capital Corp., its general
partner
By: /s/ James A. Mitarotonda
---------------------------------------
Name: James A. Mitarotonda
Title: President and Chief Executive Officer
BARINGTON CAPITAL GROUP, L.P.
By: LNA Capital Corp., its general
partner
By: /s/ James A. Mitarotonda
---------------------------------------
Name: James A. Mitarotonda
Title: President and Chief Executive Officer
LNA CAPITAL CORP.
By: /s/ James A. Mitarotonda
---------------------------------------
Name: James A. Mitarotonda
Title: President and Chief Executive Officer
PARCHE, LLC
By: Admiral Advisors, LLC, its managing
member
By: /s/ Jeffrey M. Solomon
-----------------------------------
Name: Jeffrey M. Solomon
Title: Authorized Signatory
STARBOARD VALUE & OPPORTUNITY FUND, LLC
By: Admiral Advisors, LLC, its managing
member
39
By: /s/ Jeffrey M. Solomon
-----------------------------------
Name: Jeffrey M. Solomon
Title: Authorized Signatory
ADMIRAL ADVISORS, LLC
By: Ramius Capital Group, LLC, its
sole member
By: /s/ Jeffrey M. Solomon
-----------------------------------
Name: Jeffrey M. Solomon
Title: Authorized Signatory
RAMIUS CAPITAL GROUP, LLC
By: C4S & Co., LLC, its managing member
By: /s/ Jeffrey M. Solomon
-----------------------------------
Name: Jeffrey M. Solomon
Title: Managing Member
C4S & CO., LLC
By: /s/ Jeffrey M. Solomon
-----------------------------------
Name: Jeffrey M. Solomon
Title: Managing Member
/s/ Peter A. Cohen
--------------------------------
Peter A. Cohen
/s/ Morgan B. Stark
--------------------------------
Morgan B. Stark
/s/ Jeffrey M. Solomon
--------------------------------
Jeffrey M. Solomon
/s/ Thomas W. Strauss
--------------------------------
Thomas W. Strauss
40
RJG CAPITAL PARTNERS, LP
By: RJG Capital Management, LLC,
its general partner
By: /s/ Ronald J. Gross
------------------------------
Name: Ronald J. Gross
Title: Managing Member
RJG CAPITAL MANAGEMENT, LLC
By: /s/ Ronald J. Gross
------------------------------
Name: Ronald J. Gross
Title: Managing Member
/s/ Ronald J. Gross
----------------------------------
Ronald J. Gross
41
SCHEDULE A
Summary of Beneficial Ownership of Shares of Common Stock of Steven Madden, Ltd.
AMOUNT
BENEFICIALLY PERCENT
BENEFICIAL OWNER(7) OWNED OF CLASS(1)
------------------- ----- -----------
----------------------------------------------------------------------------------------------------------------
Barington Companies Equity Partners, L.P. ("Barington 288,937 (2)(4) 2.21% (2)(4)
LP")
----------------------------------------------------------------------------------------------------------------
Barington Companies Investors, LLC ("Barington Investors (2) (2)
LLC")
----------------------------------------------------------------------------------------------------------------
James Mitarotonda (2)(4) (2)(4)
----------------------------------------------------------------------------------------------------------------
Barington Companies Offshore Fund, Ltd. (BVI) 48,535 (3)(4) 0.37% (3)(4)
("Barington Offshore")
----------------------------------------------------------------------------------------------------------------
Barington Companies Advisors, LLC ("Barington Advisors LLC") (3) (3)
----------------------------------------------------------------------------------------------------------------
Barington Capital Group, L.P. ("Barington Capital LP") (2)(3)(4) (2)(3)(4)
----------------------------------------------------------------------------------------------------------------
LNA Capital Corp. ("LNA") (4) (4)
----------------------------------------------------------------------------------------------------------------
Parche, LLC ("Parche") 105,496 (5) 0.81% (5)
----------------------------------------------------------------------------------------------------------------
Starboard Value & Opportunity Fund, LLC ("Starboard") 553,852 (5) 4.24% (5)
----------------------------------------------------------------------------------------------------------------
Admiral Advisors, LLC ("Admiral") (5) (5)
----------------------------------------------------------------------------------------------------------------
Ramius Capital Group, LLC ("RCG") (5) (5)
----------------------------------------------------------------------------------------------------------------
C4S & Co., LLC ("C4S") (5) (5)
----------------------------------------------------------------------------------------------------------------
Peter A. Cohen (5) (5)
----------------------------------------------------------------------------------------------------------------
Morgan B. Stark (5) (5)
----------------------------------------------------------------------------------------------------------------
Jeffrey M. Solomon (5) (5)
----------------------------------------------------------------------------------------------------------------
Thomas W. Strauss (5) (5)
----------------------------------------------------------------------------------------------------------------
RJG Capital Partners, LP ("RJG LP") 8,600 (6) 0.066% (6)
----------------------------------------------------------------------------------------------------------------
RJG Capital Management, LLC ("RJG LLC") (6) (6)
----------------------------------------------------------------------------------------------------------------
Ronald Gross (collectively with beneficial owners (6) (6)
listed above, "Barington Group")
----------------------------------------------------------------------------------------------------------------
BARINGTON GROUP 1,005,420 7.7%
----------------------------------------------------------------------------------------------------------------
(1) Based upon based upon the 13,053,505 shares of Common Stock reported by the
Company to be issued and outstanding as of November 3, 2004 in its Form 10-Q
filed with the Securities and Exchange Commission on November 9, 2004 (the
"Issued and Outstanding Shares").
(2) The following members of the Barington Group may also be deemed to
beneficially own the 288,927 shares of Common Stock owned by Barington LP: (a)
as the general partner of Barington LP, Barington Investors LLC; (b) as the
managing member of Barington Investors LLC, Mr. Mitarotonda; (c) as the majority
member of Barington Investors LLC, Barington Capital LP; and (d) the other
members discussed in paragraph (4) below.
(3) The following members of the Barington Group may also be deemed to
beneficially own the 48,535 shares of Common Stock owned by Barington Offshore:
(a) as the investment advisor to Barington Offshore, Barington Advisors LLC; (b)
as the managing member of Barington Advisors LLC, Barington Capital LP and (c)
the other members discussed in paragraph (4) below.
(4) The following members of the Barington Group may also be deemed to
beneficially own BOTH the 288,937 shares owned by Barington LP and the 48,535
shares owned by Barington Offshore, representing an aggregate of 337,472 shares,
constituting approximately 2.58% of the Issued and Outstanding Shares: (a)
Barington Capital LP, as discussed above in paragraphs (2) and (3); (b) as the
general partner of Barington Capital LP, LNA; and (c) as the sole stockholder
and director of LNA, and, as discussed in paragraph (2) above, as the managing
42
member of Barington Investors LLC, Mr. Mitarotonda. Mr. Mitarotonda has sole
voting and dispositive power with respect to the 288,937 shares owned by
Barington LP and the 48,535 shares owned by Barington Offshore by virtue of his
authority to vote and dispose of such shares.
(5) The following members of the Barington Group may also be deemed to
beneficially own BOTH the 105,496 shares and the 553,852 shares of Common Stock
owned by Parche and Starboard, respectively, representing an aggregate of
659,348 shares, constituting approximately 5.05% of the Issued and Outstanding
Shares: (a) as the managing member of each of Parche and Starboard, Admiral; (b)
as the sole member of Admiral, RCG; (c) as the managing member of RCG, C4S; (d)
as the managing members of C4S, each of Peter A. Cohen, Morgan B. Stark, Jeffrey
M. Solomon and Thomas W. Strauss. Each of Messrs. Cohen, Stark, Solomon and
Strauss share voting and dispositive power with respect to the 105,496 shares
and 553,852 shares owned by Parche and Starboard, respectfully, by virtue of
their shared authority to vote and dispose of such shares. Messrs. Cohen, Stark,
Solomon and Strauss disclaim beneficial ownership of such shares.
(6) The following members of the Barington Group may also be deemed to
beneficially own the 8,600 shares owned by RJG LP: (a) as the general partner of
RJG LP, RJG LLC; and (b) as the managing member of RJG LLC, Ronald Gross. Mr.
Gross has sole voting and dispositive power with respect to the 8,600 shares
owned by RJG LP by virtue of his authority to vote and dispose of such shares.
(7) Each member of the Barington Group is deemed to have sole voting and
dispositive power over the shares of Common Stock reported as beneficially owned
by virtue of their respective positions as described in paragraphs (1) through
(6), with the exception of Messrs. Cohen, Stark, Solomon and Strauss, who have
shared authority to vote and dispose of such shares. Messrs. Cohen, Stark,
Solomon and Strauss disclaim beneficial ownership of such shares. With the
exception of Messrs. Cohen, Stark, Solomon and Strauss, each member of the
Barington Group is deemed to have sole voting and dispositive power with respect
to the shares each beneficially owns, regardless of the fact that multiple
members of the Barington Group within the same chain of ownership are deemed to
have sole voting and dispositive power with respect to such shares. Each such
member reports sole voting and dispositive power with respect to such shares
based on its relationship to the other members within the same chain of
ownership.
43
EXHIBIT 99.8
For Immediate Release
STEVEN MADDEN, LTD. AND THE BARINGTON CAPITAL GROUP
REACH AGREEMENT -
COMPANY WILL ALLOCATE $25 MILLION TO
SHARE REPURCHASE AND/OR DIVIDENDS IN 2005
Company will add an Additional Independent Director to the Board
LONG ISLAND CITY, N.Y. - February 2, 2005 - Steven Madden, Ltd. (the
"Company") and a group of investors led by Barington Capital Group, L.P. (the
"Barington Group") that has reported beneficial ownership of approximately 7.7%
of the Company's outstanding shares, announced today that they have reached an
agreement that will avoid a proxy contest at the Company's 2005 annual meeting
of shareholders.
Under the terms of the Settlement Agreement, the current Board, in its sole
discretion, will determine who will be nominated for re-election to the Board of
Directors at the 2005 annual meeting. The Company will also add a new
independent Board member who will join the recently elected Harold D. Kahn as
independent candidates for election at the 2005 annual meeting. The Barington
Group has agreed to vote for the election of each of the Board's nominees.
The Settlement Agreement includes assurances that the Company will dedicate
additional capital resources to the enhancement of shareholder value through
share repurchases (including possibly by self-tender offer) and/or dividends.
For the fiscal year ended December 31, 2004 the Company repurchased a total of
545,100 shares for an aggregate of $9.7 million. For 2005, the Company has
committed to spend $25 million, an increase of approximately 150% over 2004. It
has further committed to spend an additional $10 million in 2006. Final programs
utilizing cash resources are subject to market conditions and applicable legal
requirements.
Under the Agreement the Board will meet with representatives of the
Barington Group on a quarterly basis to engage in an open dialogue with the
Board. The Company has also agreed to appoint one of its independent directors
as a lead director.
Finally, the Agreement provides that the Barington Group will abide by
certain standstill provisions for a two year period. The Barington Group will
support the Board through the 2006 annual meeting of shareholders, subject to
the terms of the Settlement Agreement, which will be incorporated into a Report
on Form 8-K to be filed by the Company this week.
Jamie Karson, Chairman and Chief Executive Officer of Steven Madden, Ltd.
and the Outside Directors of the Company stated, "We are pleased that this
matter has been resolved in a manner that serves the best interests of our
stockholders. It has always been our intent to enhance shareholder value and
this Agreement clearly evidences that intent."
"Our Board of Directors and the management team are very focused on growing
the business, improving profitability of various divisions, further building and
leveraging the Steve Madden brand, and enhancing shareholder value for the
long-term. We collectively look forward to turning our full attention to
ensuring that Steven Madden, Ltd. remains one of the premier fashion footwear
companies in the marketplace."
James A. Mitarotonda, Chairman and Chief Executive Officer of Barington
Capital Group, stated, "This agreement demonstrates the commitment of all
parties to addressing the interests of all stockholders in a significant and
positive way. As we have previously stated, we are pleased the Company added Hal
Kahn to its Board last December so that the existing management team can benefit
from Mr. Kahn's retail and merchandising expertise. We are also pleased with the
agreement to appoint a lead director and an additional independent director to
the Board and that the Company will dedicate $35 million over the next two years
to stockholders through share repurchases and/or dividends. We believe these
actions will provide significant value to shareholders. We are looking forward
to engaging in a constructive dialogue with the Board."
Steven Madden, Ltd. designs and markets fashion-forward footwear for women,
men and children. The shoes are sold through Steve Madden retail stores,
department stores, apparel and footwear specialty stores, and on-line at
HTTP://WWW.STEVEMADDEN.COM . The Company has several licenses for the Steve
Madden and Stevies brands, including eyewear, hosiery, and belts, owns and
operates one retail store under its Steven brand, and is the licensee for l.e.i
Footwear, Candie's Footwear and Unionbay Men's Footwear.
Barington Capital Group, L.P. is an investment management firm that
primarily invests in undervalued, small-capitalization companies. Barington and
its principals are experienced value-added investors who have taken active roles
in assisting management teams in creating or improving shareholder value.