0000919574-20-004355.txt : 20200708 0000919574-20-004355.hdr.sgml : 20200708 20200629210722 ACCESSION NUMBER: 0000919574-20-004355 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20200629 DATE AS OF CHANGE: 20200708 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: HG Holdings, Inc. CENTRAL INDEX KEY: 0000797465 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 541272589 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-37720 FILM NUMBER: 20999800 BUSINESS ADDRESS: STREET 1: 2115 E. 7TH STREET, SUITE 101 CITY: CHARLOTTE STATE: NC ZIP: 28211 BUSINESS PHONE: 252-355-4610 MAIL ADDRESS: STREET 1: 2115 E. 7TH STREET, SUITE 101 CITY: CHARLOTTE STATE: NC ZIP: 28211 FORMER COMPANY: FORMER CONFORMED NAME: STANLEY FURNITURE CO INC. DATE OF NAME CHANGE: 20060315 FORMER COMPANY: FORMER CONFORMED NAME: STANLEY FURNITURE CO INC/ DATE OF NAME CHANGE: 19930908 FORMER COMPANY: FORMER CONFORMED NAME: STANLEY FURNITURE CO INC DATE OF NAME CHANGE: 19930908 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Solas Capital Management, LLC CENTRAL INDEX KEY: 0001604867 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 1063 POST ROAD STREET 2: 2ND FLOOR CITY: DARIEN STATE: CT ZIP: 06820 BUSINESS PHONE: 203-625-1300 MAIL ADDRESS: STREET 1: 1063 POST ROAD STREET 2: 2ND FLOOR CITY: DARIEN STATE: CT ZIP: 06820 SC 13D/A 1 d8565531_sc13d-a.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

SCHEDULE 13D

THE SECURITIES EXCHANGE ACT OF 1934

(Amendment No. 7)*

HG Holdings, Inc.

(Name of Issuer)

Common Stock, par value $0.02 per share

(Title of Class of Securities)

42834P108

(CUSIP Number)

Frederick Tucker Golden

c/o Solas Capital Management, LLC

1063 Post Road, 2nd Floor

Darien, CT 06820

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

Notices and Communications)

June 19, 2020

(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 §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box [X].

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.

* 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.

42834P108

1.	NAME OF REPORTING PERSON


	Solas Capital Management, LLC

2.	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
		(a)	[_]
		(b)	[X]

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

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

7.	SOLE VOTING POWER

	0

8.	SHARED VOTING POWER

	13,980,619

9.	SOLE DISPOSITIVE POWER

	0

10.	SHARED DISPOSITIVE POWER	[_]

	13,980,619

11.

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

13,980,619

12.	CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
	CERTAIN SHARES

13.	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

	40.6%

14.	TYPE OF REPORTING PERSON

	IA

CUSIP No.

42834P108

1.	NAME OF REPORTING PERSON


	Frederick Tucker Golden

2.	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
		(a)	[_]
		(b)	[X]

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

	United States of America

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

7.	SOLE VOTING POWER

	0

8.	SHARED VOTING POWER

	13,980,619

9.	SOLE DISPOSITIVE POWER

	0

10.	SHARED DISPOSITIVE POWER	[_]

	13,980,619

11.

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

13,980,619

12.	CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
	CERTAIN SHARES

13.	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

	40.6%

14.	TYPE OF REPORTING PERSON

	IN, HC

Item 1.

Security and Issuer.

This Schedule 13D relates to the shares of common stock, par value $0.02 per share (the “Shares”), of HG Holdings, Inc., a Delaware corporation (the “Issuer”). The principal executive office and mailing address of the Issuer is 2115 E. 7^th Street, Suite 101, Charlotte, North Carolina 28204.

Item 2.	Identity and Background.

(a), (b), (f)	The names of the persons filing this Statement (the “Reporting Persons”) are Solas Capital Management, LLC, a Delaware limited liability company (“Solas”) and Frederick Tucker Golden, a United States Citizen (“Mr. Golden”). Mr. Golden is the Portfolio Manager of Solas.

	The business address of each Reporting Person is c/o Solas Capital Management, LLC, 1063 Post Road, 2nd Floor, Darien, CT 06820.

(c)	The principal business of each Reporting Person is investment management.

(d), (e)	During the last five years, none of the Reporting Persons has been (a) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (b) a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

Item 3.

Source and Amount of Funds or Other Consideration.

No borrowed funds were used to purchase the Shares other than any borrowed funds used for working capital purposes in the ordinary course of business.

Item 4.

Purpose of Transaction.

The Reporting Persons originally purchased the Shares based on the Reporting Persons’ belief that the Shares, when purchased, were undervalued and represented an attractive investment opportunity. Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and the availability of Shares at prices that would make the purchase or sale of Shares desirable, the Reporting Persons may endeavor to increase or decrease their position in the Issuer through, among other things, the purchase or sale of Shares on the open market, in private transactions, by exercising any conversion rights granted to the Reporting Persons in connection with a rights offering by the Issuer or otherwise, on such terms and at such times as the Reporting Persons may deem advisable.

The Reporting Persons have periodically engaged in, and may continue to engage in, discussions with management and the Board of Directors of the Issuer (the “Board”) as well as other stockholders and third parties concerning the business, operations, assets and future plans of the Issuer.

No Reporting Person has any present plan or proposal which would relate to or result in any of the matters set forth in subparagraphs (a) - (j) of Item 4 of Schedule 13D except as set forth herein or such as would occur upon completion of any of the actions discussed herein. The Reporting Persons intend to review their investment in the Issuer on a continuing basis. Depending on various factors including, without limitation, the Issuer's financial position and investment strategy, the price levels of the Shares, conditions in the securities markets and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment in the Issuer as they deem appropriate including, without limitation, further communications with management and the Board of the Issuer, nominating or recommending candidates to serve as members of the Board, having discussions with other stockholders and potential nominees to the Board, making proposals to the Issuer concerning changes to the capitalization, ownership structure or operations of the Issuer, purchasing additional Shares, selling some or all of their Shares, engaging in short selling of or any hedging or similar transaction with respect to the Shares, or changing their intention with respect to any and all matters referred to in Item 4.

Item 5.	Interest in Securities of the Issuer.

(a), (b)	There were 34,446,839 Shares issued and outstanding as of June 19, 2020 as reported in the Issuer’s Form 10-Q filed on May 15, 2020 and adjusted for the Shares issued in connection with the rights offering reported in the Issuer’s Form 8-K filed on June 22, 2020.

	Solas has the sole power to vote or direct the vote of 0 Shares; has the shared power to vote or direct the vote of 13,980,619 Shares; has the sole power to dispose or direct the disposition of 0 Shares; and has the shared power to dispose or direct the disposition of 13,980,619 Shares. Mr. Golden has the sole power to vote or direct the vote of 0 Shares; has the shared power to vote or direct the vote of 13,980,619 Shares; has the sole power to dispose or direct the disposition of 0 Shares; and has the shared power to dispose or direct the disposition of 13,980,619 Shares.

(c)	The transactions in the Shares by the Reporting Persons during the past sixty days are set forth in Exhibit B.
(d)	Not applicable

(e)	Not applicable

Item 6.	Contracts, Arrangements, Understandings or Relationships with Respect
	to Securities of the Issuer.

	Not applicable

Item 7.	Material to be Filed as Exhibits.

	Exhibit A: Joint Filing Agreement
	Exhibit B: Schedule or Transactions

SIGNATURE

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

Dated: June 29, 2020


	Solas Capital Management, LLC
	By: /s/ Frederick Tucker Golden

	Name: Frederick Tucker Golden
	Title: Portfolio Manager


	Frederick Tucker Golden

	/s/ Frederick Tucker Golden

Attention: Intentional misstatements or omissions of fact constitute Federal criminal violations (see 18 U.S.C. 1001).

Exhibit A

AGREEMENT

The undersigned agree that this Schedule 13D dated June 29, 2020 relating to the Common Stock, par value $0.02 per share of HG Holdings shall be filed on behalf of the undersigned.


	Solas Capital Management, LLC
	By: /s/ Frederick Tucker Golden

	Name: Frederick Tucker Golden
	Title: Portfolio Manager


	Frederick Tucker Golden

	/s/ Frederick Tucker Golden

EXHIBIT B

The transactions in the Shares by the Reporting Persons since the Reporting Persons’ most recent filing of Schedule 13D in respect of the Issuer, which were acquired in connection with a rights offering by the Issuer, are as follows:

Date of Transaction	Title of Class	Number of Shares Acquired	Price Per Share

06/19/20	Common Stock, par value $0.02 per share	9,773,353*	$0.65

* Includes Common Stock received as a result of an over-subscription, as described in the Form 8-K filed by the Issuer on June 22, 2020, the amount of which was not determined until June 29, 2020.