-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DjzD6IFLLrMxWg5qWfTMPEEu5Ghv4W0fmdHHYeqJSQauyBAs/SVsRy1axQGHM4iE g9x8rVrkxxpM3JmI2ZBZEg== 0000902664-09-003483.txt : 20090903 0000902664-09-003483.hdr.sgml : 20090903 20090903160634 ACCESSION NUMBER: 0000902664-09-003483 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20090903 DATE AS OF CHANGE: 20090903 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: CLINTON GROUP INC CENTRAL INDEX KEY: 0001134119 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 32 OLD SLIP 5TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 2128250400 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: SELECT COMFORT CORP CENTRAL INDEX KEY: 0000827187 STANDARD INDUSTRIAL CLASSIFICATION: HOUSEHOLD FURNITURE [2510] IRS NUMBER: 411597886 STATE OF INCORPORATION: MN FISCAL YEAR END: 1229 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-55269 FILM NUMBER: 091053798 BUSINESS ADDRESS: STREET 1: 9800 59TH AVENUE NORTH CITY: MINNEAPOLIS STATE: MN ZIP: 55442 BUSINESS PHONE: 7635517000 MAIL ADDRESS: STREET 1: 9800 59TH AVENUE NORTH CITY: MINNEAPOLIS STATE: MN ZIP: 55442 SC 13D/A 1 p09-1760sc13da.txt SELECT COMFORT CORPORATION SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------- SCHEDULE 13D (Rule 13d-101) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) Under the Securities Exchange Act of 1934 (Amendment No. 8)* Select Comfort Corporation - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, Par Value $0.01 Per Share - -------------------------------------------------------------------------------- (Title of Class of Securities) 81616X103 - -------------------------------------------------------------------------------- (CUSIP Number) Marc Weingarten, Esq. David Rosewater, Esq. Schulte Roth & Zabel LLP 919 Third Avenue New York, New York 10022 (212) 756-2000 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) September 3, 2009 - -------------------------------------------------------------------------------- (Date of Event which Requires Filing of This Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box. [ ] NOTE: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent. (Continued on following pages) (Page 1 of 7 Pages) - -------------------------- * 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). - ------------------------------ --------------------- CUSIP NO. 81616X103 SCHEDULE 13D/A PAGE 2 OF 7 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) CLINTON GROUP, INC. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - -------------------------------------------------------------------------------- 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 -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 3,139,308 OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 3,139,308 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 3,139,308 - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.9% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IA; CO - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 81616X103 SCHEDULE 13D/A PAGE 3 OF 7 PAGES - ------------------------------ --------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) CLINTON MAGNOLIA MASTER FUND, LTD. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (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 CAYMAN ISLANDS - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 3,139,308 OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 3,139,308 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 3,139,308 - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.9% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 81616X103 SCHEDULE 13D/A PAGE 4 OF 7 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) GEORGE HALL - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - -------------------------------------------------------------------------------- 5 CHECK 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 0 ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 3,139,308 OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH 0 ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 3,139,308 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 3,139,308 - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.9% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 81616X103 SCHEDULE 13D/A PAGE 5 OF 7 PAGES - ------------------------------ --------------------- ITEM 1. SECURITY AND ISSUER. This Amendment No. 8 is filed with respect to the shares of the common stock, par value $0.01 per share (the "Shares"), of Select Comfort Corporation, a Minnesota corporation (the "Issuer"), beneficially owned by the Reporting Persons (as previously defined) as of September 2, 2009 and amends and supplements the Schedule 13D originally filed with the Securities and Exchange Commission (the "SEC") on March 10, 2008, as previously amended (the "Original Schedule 13D" and together with this Amendment, the "Schedule 13D"). Except as set forth herein, the Schedule 13D is unmodified. ITEM 4. PURPOSE OF TRANSACTION. Item 4 is hereby amended and supplemented as follows: On September 3, 2009, Clinton sent a letter to the Issuer (the "September 3rd Letter") addressing the Issuer's press release, issued on the same day in response to a lawsuit filed by Sterling seeking an independent third party to conduct a recount of the shareholder vote of August 27, 2009. In the September 3rd Letter, Clinton questioned why, despite the Issuer's acknowledgment of its decision to conduct a recount, the Issuer claimed in its press release that it would "vigorously defend" the Sterling lawsuit. Clinton further stated that it does not understand why the Issuer would spend its limited resources defending the lawsuit which appears to be seeking to simply establish the results of the election beyond a reasonable doubt. Clinton also noted that expending the Company's limited resources on defending the lawsuit is of particular concern for various reasons, including but not limited to the imminent expiration of the Issuer's lenders' forbearance agreement, the Issuer's lack of an alternative refinancing plan and the potential for additional litigation initiated by Sterling if the Sterling transaction is terminated while uncertainty exists with respect to the actual outcome of the shareholder vote. As such, Clinton urged the Issuer to immediately appoint an independent third party inspector to assist in a recount of the votes and to review the votes cast. A copy of the September 3rd Letter is attached hereto as Exhibit F and is incorporated herein by reference in its entirety. ITEM 5. INTERESTS IN SECURITIES OF THE ISSUER. Paragraphs (a) through (c) of Item 5 are hereby amended and restated in the entirety as follows: (a) As of the close of business on September 2, 2009, the Reporting Persons may be deemed the beneficial owners of an aggregate of 3,139,308 Shares, constituting approximately 6.9% of the Shares outstanding. The aggregate percentage of Shares beneficially owned by the Reporting Persons is based upon 45,595,806 Shares outstanding, which is the total number of Shares outstanding as of July 20, 2009 as reported in the Issuer's Definitive Proxy Statement filed with the Securities and Exchange Commission on July 28, 2009. (b) By virtue of an investment management agreement with CMAG, Clinton has the power to vote or direct the voting, and to dispose or direct the disposition, of all of the 3,139,308 Shares held by CMAG. By virtue of his direct and indirect control of Clinton, George Hall is deemed to have shared voting power and shared dispositive power with respect to all Shares as to which Clinton has voting power or dispositive power. Accordingly, Clinton and George Hall are deemed to have shared voting and shared dispositive power with respect to an aggregate of 3,139,308 Shares. (c) Information concerning transactions in the Shares effected by the Reporting Persons since the filing of Amendment No. 7 to the Schedule 13D on September 2, 2009 is set forth in Schedule A hereto and is incorporated herein - ------------------------------ --------------------- CUSIP NO. 81616X103 SCHEDULE 13D/A PAGE 6 OF 7 PAGES - ------------------------------ --------------------- by reference. Unless otherwise indicated, all of such transactions were effected in the open market. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS. Item 7 is hereby amended and supplemented as follows: Exhibit F - Letter to the Issuer dated September 3, 2009. - --------------------------- ------------------- CUSIP NO. 81616X103 SCHEDULE 13D/A PAGE 7 OF 7 PAGES - --------------------------- ------------------- SIGNATURES After reasonable inquiry and to the best of his or its knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: September 3, 2009 CLINTON GROUP, INC. By: /s/ Francis Ruchalski --------------------------- Name: Francis Ruchalski Title: Chief Financial Officer CLINTON MAGNOLIA MASTER FUND, LTD. By: Clinton Group, Inc. its investment manager By: /s/ Francis Ruchalski --------------------------- Name: Francis Ruchalski Title: Chief Financial Officer /s/ George Hall ------------------------------ George Hall SCHEDULE A TRANSACTIONS IN THE SHARES BY THE REPORTING PERSONS SINCE THE FILING OF AMENDMENT NO. 7 TO THE SCHEDULE 13D Equity Activity for Clinton Magnolia Master Fund, Ltd. Trade Date Shares Purchased (Sold) Price Per Share ($) ----------- ------------------------ ------------------- 9/02/09 10,000 2.73 EX-99 2 p09-1760exhibit_f.txt EXHIBIT F, LETTER TO ISSUER Clinton Group, Inc. 9 West 57th Street 26th Floor New York, NY 10019 September 3, 2009 Select Comfort Corporation 9800 59th Avenue North Plymouth, MN 55442 Attention: Mr. William R. McLaughlin Dear Mr. McLaughlin: We have reviewed the press release issued this morning by Select Comfort Corp. (the "COMPANY") in response to Sterling Partners' lawsuit seeking an independent third party to conduct a recount of the shareholder vote of August 27, 2009 and to review the votes cast. As we stated recently in our Schedule 13D/A filing in connection with our letter to the Company dated August 31, 2009, we believe that the Company's determination to conduct a recount is an appropriate acknowledgment of the legitimate interests of all of the Company's stakeholders to ensure that the outcome of the vote on the Sterling Partners' transaction is accurately determined. However, in spite of this acknowledgment, you have now stated that you intend to "vigorously defend" this lawsuit. As far as we can tell, Sterling Partners' lawsuit primarily seeks to have an impartial, independent agency with significant experience as an inspector of elections conduct the recount so that there can be no remaining question as to its outcome regardless of whether the shareholders approved or rejected the Sterling Partners' transaction in the final tally. We fail to understand why the Company would be so adamant about wasting the Company's resources to fight a lawsuit that essentially seeks to establish the outcome of the shareholder vote beyond a reasonable doubt. Expending the Company's limited funds for this purpose is especially concerning because, among other things, (i) the future of the Company hangs in the balance with the Company's lenders' forbearance agreement set to expire imminently, (ii) no alternative plans for refinancing the Company's balance sheet have been offered by the Company's Board of Directors and (iii) the potential for additional litigation by Sterling Partners looms over the Company in the event that the Sterling Partners' transaction is terminated under circumstances in which the true outcome of the shareholder vote is uncertain. We urge you to immediately appoint an additional independent third party inspector to conduct a recount and to review the votes cast along with Broadridge so that the actual will of the shareholders can be definitively determined. Very truly yours, CLINTON GROUP, INC. By: /s/ Vincent D'Arpino --------------------------------- Name: Vincent D'Arpino Title: General Counsel CC: Mark A. Kimball, General Counsel of Select Comfort Corporation Board of Directors of Select Comfort Corporation -----END PRIVACY-ENHANCED MESSAGE-----