UNITED STATES

 

 

SECURITIES AND EXCHANGE COMMISSION

 

 

Washington, D.C. 20549

 

 


 

 

SCHEDULE 13D

 

 

(Rule 13d-101)

 

 

Information to be Included in Statements Filed Pursuant to § 240.13d-1(a) and Amendments Thereto Filed Pursuant to § 240.13d-2(a)

 

(Amendment No. 2)*

 


 

The Container Store Group, Inc.

(Name of Issuer)

 

Common Stock, par value $0.01

(Title of Class of Securities)

 

210751 103

(CUSIP Number)

 

Peter Lodwick, Esq.

The Container Store Group, Inc.

500 Freeport Parkway

Coppell, Texas 75019

(972) 538-6507

(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

 

August 1, 2016

(Date of Event Which Requires Filing of Statement on Schedule 13D)

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 §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), checking the following box. o

 

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

 

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 



 

 

(1)

Name of Reporting Persons:
William Arthur Tindell, III

 

 

(2)

Check the Appropriate Box if a Member of a Group (See Instructions):

 

 

(a)

 o

 

 

(b)

 x

 

 

(3)

SEC Use Only:

 

 

(4)

Source of Funds (See Instructions):
OO

 

 

(5)

Check Box if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e):     o

 

 

(6)

Citizenship or Place of Organization:
United States

 

Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With:

(7)

Sole Voting Power
1,668,717

 

(8)

Shared Voting Power
0

 

(9)

Sole Dispositive Power
1,668,717

 

(10)

Shared Dispositive Power
0

 

 

(11)

Aggregate Amount Beneficially Owned by Each Reporting Person:
1,668,717

 

 

(12)

Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):   o

 

 

(13)

Percent of Class Represented by Amount in Row (11):
3.5%*

 

 

(14)

Type of Reporting Person (See Instructions):
IN

 


*                                         Based on 47,986,975 shares of Common Stock outstanding as reported in the Form 10-K filed by the Issuer on May 10, 2016, and calculated in accordance with Rule 13d-3(d)(1)(i).

 

2



 

CUSIP No. 210751 103

Schedule 13D

 

 

 

(1)

Name of Reporting Persons:
Sharon Tindell

 

 

(2)

Check the Appropriate Box if a Member of a Group (See Instructions):

 

 

(a)

 o

 

 

(b)

 x

 

 

(3)

SEC Use Only:

 

 

(4)

Source of Funds (See Instructions):
OO

 

 

(5)

Check Box if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e):     o

 

 

(6)

Citizenship or Place of Organization:
United States

 

Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With:

(7)

Sole Voting Power
1,817,032

 

(8)

Shared Voting Power
0

 

(9)

Sole Dispositive Power
1,817,032

 

(10)

Shared Dispositive Power
0

 

 

(11)

Aggregate Amount Beneficially Owned by Each Reporting Person:
1,817,032

 

 

(12)

Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):   o

 

 

(13)

Percent of Class Represented by Amount in Row (11):
3.8%*

 

 

(14)

Type of Reporting Person (See Instructions):
IN

 


*                                         Based on 47,986,975 shares of Common Stock outstanding as reported in the Form 10-K filed by the Issuer on May 10, 2016, and calculated in accordance with Rule 13d-3(d)(1)(i).

 

3



 

CUSIP No. 210751 103

Schedule 13D

 

 

 

 

 

(1)

Name of Reporting Persons:
Melissa Reiff

 

 

(2)

Check the Appropriate Box if a Member of a Group (See Instructions):

 

 

(a)

 o

 

 

(b)

 o

 

 

(3)

SEC Use Only:

 

 

(4)

Source of Funds (See Instructions):
OO

 

 

(5)

Check Box if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e):     o

 

 

(6)

Citizenship or Place of Organization:
United States

 

Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With:

(7)

Sole Voting Power
1,031,003

 

(8)

Shared Voting Power
0

 

(9)

Sole Dispositive Power
1,031,003

 

(10)

Shared Dispositive Power
0

 

 

(11)

Aggregate Amount Beneficially Owned by Each Reporting Person:
1,031,003

 

 

(12)

Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):   o

 

 

(13)

Percent of Class Represented by Amount in Row (11):
2.1%*

 

 

(14)

Type of Reporting Person (See Instructions):
IN

 


*                                         Based on 47,986,975 shares of Common Stock outstanding as reported in the Form 10-K filed by the Issuer on May 10, 2016, and calculated in accordance with Rule 13d-3(d)(1)(i).

 

4



 

CUSIP No. 210751 103

Schedule 13D

 

 

This Amendment No. 2 (this “Amendment”) amends and supplements the Schedule 13D filed on November 18, 2013 with the Securities and Exchange Commission (the “Original Schedule 13D” and, as further amended and supplemented by Amendment No. 1 (“Amendment No. 1”) to the Original Schedule 13D filed on May 10, 2016 with the Securities and Exchange Commission, the “Schedule 13D”) by the Reporting Persons with respect to the Common Stock of the Issuer.  Capitalized terms not defined in this Amendment shall have the meaning ascribed to them in the Original Schedule 13D.

 

Item 2.                                 Identity and Background

 

This Amendment amends and restates Item 2(c) of the Original Schedule 13D in its entirety as set forth below:

 

(c)                                 William A. “Kip” Tindell, III is the Chairman of the Board of Directors of the Issuer.

 

Melissa Reiff is the Chief Executive Officer and serves on the Board of Directors of the Issuer.

 

Sharon Tindell is the President and Chief Merchandising Officer and serves on the Board of Directors of the Issuer.

 

Item 4.                                 Purpose of Transaction

 

This Amendment amends and restates Item 4 of the Schedule 13D in its entirety as set forth below:

 

The Common Stock acquired by the Reporting Persons in the Exchange and the other Common Stock included in this Schedule 13D are held or beneficially owned by the Reporting Persons for investment purposes.  However, the Reporting Persons are the:

 

·                  Chairman of the Board of Directors;

 

·                  Chief Executive Officer and director; and

 

·                  President and Chief Merchandising Officer and director

 

of the Issuer, respectively. As such, the Reporting Persons intend to participate in and actively influence the affairs of the Issuer.  The Reporting Persons expect to acquire additional Common Stock of the Issuer through compensatory grants by the Issuer or through public or private purchases. The Reporting Persons may dispose of a portion of their respective interests in the Issuer through public or private sales, transfers to trusts with which the Reporting Persons may or may not serve as a trustee, or by gift or donation to family members, charitable organizations or third parties.  In the ordinary course of their duties as executive officers and directors of the Issuer, the Reporting Persons have and expect in the future to discuss and to make decisions regarding plans or proposals with respect to the matters specified in clauses (a) through (j) of Item 4 of this Schedule 13D with the Issuer.

 

Pursuant to the approval of the Issuer’s Board of Directors (the “Board”) on May 5, 2016, effective July 1, 2016, Melissa Reiff, former President and Chief Operating Officer of the Issuer, became the Issuer’s Chief Executive Officer, succeeding William A. “Kip” Tindell, III, and Sharon Tindell added President to her Chief Merchandising Officer title.  William A. “Kip” Tindell, III, former Chairman and Chief Executive Officer, retains his role as Chairman of the Board.

 

5



 

CUSIP No. 210751 103

Schedule 13D

 

 

Pursuant to a stockholders agreement entered into by the Issuer, Reporting Persons and Green Equity Investors V, L.P., a Delaware limited partnership (“GEI V”), Green Equity Investors Side V, L.P., a Delaware limited partnership (“GEI Side V”), and TCS Co-Invest, LLC, a Delaware limited liability company (“TCS Co-Invest”, and together with GEI V and GEI Side V, the “Investors”), on August 16, 2007, the Reporting Persons held certain registration rights relating to the Issuer.  Upon the closing of the Issuer’s initial public offering (the “IPO”), this stockholders agreement was amended and restated (the “Amended Stockholders Agreement”) such that the registration rights provisions, which include the obligation of the Reporting Persons to agree to enter into “holdback” arrangements of the kind discussed in the following paragraph, remain in effect.  For further information, see Item 6 of the Original Schedule 13D, and the Amended Stockholders Agreement filed with the Original Schedule 13D as Exhibit 2.

 

Concurrently with the closing of the IPO, the Reporting Persons entered into a voting agreement (the “Voting Agreement”) with the Investors. The Voting Agreement provided that, for so long as the Investors and the Reporting Persons collectively held at least 40% of the Issuer’s outstanding Common Stock, or the agreement is otherwise terminated in accordance with its terms, the Investors would vote their shares of the Issuer’s Common Stock in favor of the election of each of the Reporting Persons to the Board upon their nomination by the Nominating and Corporate Governance Committee of the Board and each of the Reporting Persons would vote their shares of the Issuer’s Common Stock in favor of the election of the directors affiliated with the Investors upon their nomination by the Nominating and Corporate Governance Committee of the Board.  On May 6, 2016, the Reporting Persons entered into a Termination of Voting Agreement (the “Termination Agreement”) with the Investors, pursuant to which the parties agreed to terminate the Voting Agreement; provided that each Investor agreed to vote all shares of Common Stock owned or held of record by such Investor at the annual meeting of the Issuer’s stockholders to be held in 2016 (the “2016 Annual Meeting”), in favor of, or to take all actions by written consent in lieu of any such 2016 Annual Meeting as are necessary, to cause the election of William A. “Kip” Tindell, III as a member of the Board to the extent such person is nominated for election as a director by the Nominating and Corporate Governance Committee of the Board.

 

On August 1, 2016, the Issuer held its 2016 Annual Meeting, and each Investor voted all shares of the Issuer’s Common Stock owned or held of record by such Investor at the 2016 Annual Meeting in favor of the election of William A. “Kip” Tindell, III to the Board.  Therefore, all obligations under the Termination Agreement have been satisfied and the Voting Agreement has terminated.  As a result, the Investors no longer have any obligation to vote their shares of the Issuer’s Common Stock in favor of the election of each of the Reporting Persons to the Board, and the Reporting Persons no longer have any obligation to vote their shares of the Issuer’s Common Stock in favor of the election of the directors affiliated with the Investors to the Board.

 

For further information, see Item 6 of Amendment No. 1, and the Termination Agreement filed as Exhibit 6 to Amendment No. 1.

 

Item 5.                             Interest in Securities of the Issuer

 

This Amendment amends and restates Item 5 of the Schedule 13D in its entirety as set forth below:

 

(a) and (b)  The information contained on the cover pages to this Schedule 13D and Item 3 is incorporated herein by reference.

 

6



 

CUSIP No. 210751 103

Schedule 13D

 

 

The Reporting Persons collectively beneficially own 4,516,752 shares of Common Stock.  Of these 4,516,752 shares of Common Stock:

 

·                  William A. “Kip” Tindell beneficially owns 1,668,717 shares of Common Stock, of which 85,000 are shares of Common Stock receivable upon the exercise of currently exercisable stock options granted on October 31, 2013, and 1,583,717 are directly held shares of Common Stock;

·                  Sharon Tindell beneficially owns 1,817,032 shares of Common Stock, of which 104,553 are shares of Common Stock receivable upon the exercise of currently exercisable stock options granted on October 31, 2013, and 1,712,479 are directly held shares of Common Stock; and

·                  Melissa Reiff beneficially owns 1,031,003 shares of Common Stock, of which 37,723 are shares of Common Stock receivable upon the exercise of currently exercisable stock options granted on June 20, 2012, 522,934 are shares of Common Stock receivable upon the exercise of currently exercisable stock options granted on October 31, 2013, and 470,346 are directly held shares of Common Stock.

 

(c)                                  This Amendment amends Item 5(c) of the Schedule 13D as set forth below:

 

Effective July 1, 2016, the Issuer granted the following shares of restricted Common Stock to the Reporting Persons:

 

·                                          Melissa Reiff: 226,014 shares of restricted Common Stock; and

 

·                                          Sharon Tindell: 90,348 shares of restricted Common Stock.

 

On August 1, 2016, pursuant to the terms of his Third Amended and Restated Employment Agreement and the Issuer’s Non-Employee Director Compensation Policy, William A. “Kip” Tindell, III received an option to purchase 30,675 shares of the Issuer’s Common Stock, at an exercise price of $5.35 per share.  Subject to the Mr. Tindell’s continued service through each such vesting date, the option will vest and become exercisable in three equal installments as follows: (i) the first installment will vest on the earlier of (x) the day immediately preceding the date of the first annual meeting of the Issuer’s stockholders (any annual meeting of the Issuer’s stockholders, an “Annual Meeting”) following August 1, 2016 (the “Grant Date”) and (y) August 1, 2017; (ii) the second installment will vest on the earlier of (x) the day immediately preceding the second Annual Meeting following the Grant Date and (y) August 1, 2018; and (iii) the third installment will vest on the earlier of (x) the day immediately preceding the third Annual Meeting following the Grant Date and (y) August 1, 2019.

 

Other than the transactions reported herein, none of the Reporting Persons has effected any transactions involving the Common Stock in the 60 days prior to filing this Schedule 13D.

 

(d)                                 Not applicable.

 

(e)                                  As a result of the completion of the Issuer’s 2016 Annual Meeting, as of August 1, 2016, all obligations under the Termination Agreement have been satisfied, and the Voting Agreement has terminated.  Therefore, the Reporting Persons ceased to be a group with the Investors, and Melissa Reiff ceased to be part of a group with William A. “Kip” Tindell, III and Sharon Tindell.  As a result, as of August 1, 2016, Melissa Reiff ceased to be the beneficial owner of more than 5% of the Issuer’s Common Stock.

 

Because William A. “Kip” Tindell, III and Sharon Tindell are husband and wife, they may be deemed to share voting and investment control over each other’s shares, and may be deemed to be a group within the meaning of Section 13(d)(3) under the Securities Exchange Act of 1934, as amended. Mr. and Ms. Tindell disclaim beneficial ownership of each other’s shares.

 

7



 

CUSIP No. 210751 103

Schedule 13D

 

 

Item 7.                             Material to be Filed as Exhibits

 

Exhibit 5                                               Joint Filing Agreement, dated November 18, 2013 (incorporated by reference to Exhibit 5 to the Reporting Persons’ Original Schedule 13D, filed with the Securities and Exchange Commission on November 18, 2013).

 

8



 

SIGNATURE

 

After reasonable inquiry and to the best of my knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.

 

 

Dated:               August 8, 2016

 

 

 

 

 

 

By:

/s/ WILLIAM A. TINDELL, III

 

 

Name: William A. “Kip” Tindell, III

 

 

 

 

 

By:

/s/ SHARON TINDELL

 

 

Name: Sharon Tindell

 

 

 

 

 

By:

/s/ MELISSA REIFF

 

 

Name: Melissa Reiff

 

9



 

CUSIP No. 210751 103

Schedule 13D

 

 

EXHIBIT INDEX

 

EXHIBIT NO.

 

DESCRIPTION

 

 

 

Exhibit 5

 

Joint Filing Agreement, dated November 18, 2013 (incorporated by reference to Exhibit 5 to the Reporting Persons’ Original Schedule 13D, filed with the Securities and Exchange Commission on November 18, 2013).

 

10