-----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, NZCc3/rJ027u2rJ+jRRKwg7+vB+qR6hmW3161f5WpCJChcUjV26xMKtrKWY1PvCZ oUKQJ5o5y5D5aYpUNiIKRg== 0000902664-08-002794.txt : 20080925 0000902664-08-002794.hdr.sgml : 20080925 20080925091249 ACCESSION NUMBER: 0000902664-08-002794 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 20080925 DATE AS OF CHANGE: 20080925 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: DILLARDS INC CENTRAL INDEX KEY: 0000028917 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-DEPARTMENT STORES [5311] IRS NUMBER: 710388071 STATE OF INCORPORATION: DE FISCAL YEAR END: 0203 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-02823 FILM NUMBER: 081087718 BUSINESS ADDRESS: STREET 1: 1600 CANTRELL RD CITY: LITTLE ROCK STATE: AR ZIP: 72201 BUSINESS PHONE: 5013765200 FORMER COMPANY: FORMER CONFORMED NAME: DILLARD DEPARTMENT STORES INC DATE OF NAME CHANGE: 19920703 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 BUSINESS ADDRESS: STREET 1: 32 OLD SLIP 5TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 2128250400 SC 13D 1 p08-1376sc13d.txt DILLARD'S, INC. 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 Dillard's, Inc. - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, Par Value $0.01 Per Share - -------------------------------------------------------------------------------- (Title of Class of Securities) 254067101 - -------------------------------------------------------------------------------- (CUSIP Number) Marc Weingarten, Esq. David Rosewater, Esq. Schulte Roth & Zabel LLP 919 Third Avenue New York, New York 10022 (212) 756-2000 Peter G. Smith, Esq. Kramer Levin Naftalis & Frankel LLP 1177 Avenue of the Americas New York, NY 10036 (212) 715-9100 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) September 25, 2008 - -------------------------------------------------------------------------------- (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 33 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. 254067101 SCHEDULE 13D PAGE 2 OF 33 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) BARINGTON COMPANIES EQUITY PARTNERS, L.P. - -------------------------------------------------------------------------------- 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 591,862 (including 45,000 shares subject to call options) ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY NONE OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH 591,862 (including 45,000 shares subject to call options) ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER NONE - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 591,862 (including 45,000 shares subject to call options) - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.85% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 3 OF 33 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) BARINGTON COMPANIES INVESTORS, LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 591,862 (including 45,000 shares subject to call options) ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY NONE OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH 591,862 (including 45,000 shares subject to call options) ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER NONE - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 591,862 (including 45,000 shares subject to call options) - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.85% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 4 OF 33 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) BARINGTON INVESTMENTS, L.P. - -------------------------------------------------------------------------------- 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 341,298 (including 26,200 shares subject to call options) ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY NONE OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH 341,298 (including 26,200 shares subject to call options) ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER NONE - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 341,298 (including 26,200 shares subject to call options) - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.49% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 5 OF 33 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) BARINGTON COMPANIES ADVISORS, LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 341,298 (including 26,200 shares subject to call options) ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY NONE OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH 341,298 (including 26,200 shares subject to call options) ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER NONE - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 341,298 (including 26,200 shares subject to call options) - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.49% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 6 OF 33 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) BARINGTON COMPANIES OFFSHORE FUND, LTD. - -------------------------------------------------------------------------------- 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 1,033,209 (including 78,800 shares subject to call options) ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY NONE OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH 1,033,209 (including 78,800 shares subject to call options) ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER NONE - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,033,209 (including 78,800 shares subject to call options) - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.49% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 7 OF 33 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) BARINGTON OFFSHORE ADVISORS II, LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 1,033,209 (including 78,800 shares subject to call options) ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY NONE OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH 1,033,209 (including 78,800 shares subject to call options) ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER NONE - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,033,209 (including 78,800 shares subject to call options) - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.49% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IA, OO - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 8 OF 33 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) BARINGTON CAPITAL GROUP, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 1,966,369 (including 150,000 shares subject to call options) ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY NONE OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH 1,966,369 (including 150,000 shares subject to call options) ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER NONE - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,966,369 (including 150,000 shares subject to call options) - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.83% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 9 OF 33 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) LNA CAPITAL CORP. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 1,966,369 (including 150,000 shares subject to call options) ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY NONE OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH 1,966,369 (including 150,000 shares subject to call options) ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER NONE - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,966,369 (including 150,000 shares subject to call options) - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.83% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 10 OF 33 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) JAMES A. MITAROTONDA - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION UNITED STATES - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 1,966,369 (including 150,000 shares subject to call options) ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY NONE OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH 1,966,369 (including 150,000 shares subject to call options) ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER NONE - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,966,369 (including 150,000 shares subject to call options) - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.83% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 11 OF 33 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) [X] (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 1,971,129 (including 787,500 shares subject to OWNED BY call options) EACH ---------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,971,129 (including 787,500 shares subject to call options) - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,971,129 (including 787,500 shares subject to call options) - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.84% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IA; CO - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 12 OF 33 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) CLINTON MULTISTRATEGY MASTER FUND, LTD. - -------------------------------------------------------------------------------- 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 CAYMAN ISLANDS - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 433,235 (including 129,300 shares subject to OWNED BY call options) EACH ---------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 433,235 (including 129,300 shares subject to call options) - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 433,235 (including 129,300 shares subject to call options) - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.62% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 13 OF 33 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) CLINTON SPECIAL OPPORTUNITIES MASTER FUND, LTD. - -------------------------------------------------------------------------------- 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 CAYMAN ISLANDS - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 206,913 (including 26,100 shares subject to OWNED BY call options) EACH ---------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 206,913 (including 26,100 shares subject to call options) - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 206,913 (including 26,100 shares subject to call options) - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.3% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 14 OF 33 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) [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 CAYMAN ISLANDS - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 1,330,981 (including 632,100 shares subject to OWNED BY call options) EACH ---------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,330,981 (including 632,100 shares subject to call options) - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,330,981 (including 632,100 shares subject to call options) - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.92% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 15 OF 33 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) [X] (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 1,971,129 (including 787,500 shares subject to OWNED BY call options) EACH ---------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,971,129 (including 787,500 shares subject to call options) - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,971,129 (including 787,500 shares subject to call options) - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.84% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 16 OF 33 PAGES - ------------------------------ --------------------- ITEM 1. SECURITY AND ISSUER. This statement on Schedule 13D (the "Statement") relates to the Class A common stock, par value $0.01 per share (the "Common Stock"), of Dillard's Inc., a Delaware corporation (the "Company"). The principal executive offices of the Company are located at 1600 Cantrell Road, Little Rock, Arkansas 72201. Item 2. IDENTITY AND BACKGROUND. (a) - (c) This Statement is being filed by Barington Companies Equity Partners, L.P., Barington Companies Investors, LLC, Barington Investments, L.P., Barington Companies Advisors, LLC, Barington Companies Offshore Fund, Ltd., Barington Offshore Advisors II, LLC, Barington Capital Group, L.P., LNA Capital Corp., James A. Mitarotonda, Clinton Multistrategy Master Fund, Ltd., Clinton Special Opportunities Master Fund, Ltd., Clinton Magnolia Master Fund, Ltd., Clinton Lexington Master Fund, L.P., Clinton Group, Inc. and George E. Hall (each, a "Reporting Entity" and, collectively, the "Reporting Entities"). The Reporting Entities, together with certain other parties, were previously members of a Schedule 13D group as reported in a Schedule 13D filed with the Securites and Exchange Commission (the "SEC") on January 29, 2008. In light of the Agreement that such parties entered into with the Company, dated as of April 1, 2008 (the "Agreement"), described in, and filed as an exhibit to, the Schedule 13D amendment filed with the SEC on April 3, 2008, such parties felt that it was no longer necessary to work together regarding their respective investments in the Company. As a result, such parties determined as of the close of business on May 19, 2008 to make decisions regarding their respective investments in shares of Common Stock independently of each other, and to no longer act together for the purpose of acquiring, holding or disposing of securities of the Company, as reported in the Schedule 13D amendments filed with the SEC on May 20, 2008. The Reporting Entities have decided to reconstitute their prior group arrangment by entering into a letter agreement, dated September 25, 2008, which letter agreement is described in item 6 to this Schedule 13D and is attached hereto as Exhibit 99.2. As of September 24, 2008, the Reporting Entities are the beneficial owners of, in the aggregate, 3,937,498 shares of Common Stock, which includes 937,500 shares of Common Stock subject to call options, representing approximately 5.67% of the shares of Common Stock presently outstanding based upon the 69,443,560 shares of Common Stock reported by the Company to be issued and outstanding as of August 30, 2008 in its Form 10-Q for the quarterly period ended August 2, 2008 filed with the SEC on September 11, 2008 (the "Issued and Outstanding Shares"). Barington Companies Equity Partners, L.P. is a Delaware limited partnership. The principal business of Barington Companies Equity Partners, L.P. is acquiring, holding and disposing of investments in various companies. The address of the principal business and principal office of Barington Companies Equity Partners, L.P. is 888 Seventh Avenue, 17th Floor, New York, New York 10019. Barington Investments, L.P. is a Delaware limited partnership. The principal business of Barington Investments, L.P. is acquiring, holding and disposing of investments in various companies. The address of the principal business and principal office of Barington Investments, L.P. is 888 Seventh Avenue, 17th Floor, New York, New York 10019. Barington Companies Offshore Fund, Ltd. is an international business company organized under the laws of the British Virgin Islands. The principal business of Barington Companies Offshore Fund, Ltd. is acquiring, holding and disposing of investments in various companies. The address of the principal business and principal office of Barington Companies Offshore Fund, Ltd. is c/o Bison Financial Services Limited, Bison Court, Road Town, Tortola, British Virgin Islands. The executive officers and directors of Barington Companies Offshore Fund, Ltd. and their principal occupations and business addresses are set forth on Schedule I and incorporated by reference in this Item 2. The general partner of Barington Companies Equity Partners, L.P. is Barington Companies Investors, LLC. Barington Companies Investors, LLC is a Delaware limited liability company. The principal business of Barington Companies Investors, LLC is serving as the general partner of Barington Companies Equity Partners, L.P. The address of the principal business and principal office of Barington Companies Investors, LLC is 888 Seventh Avenue, 17th Floor, New York, New York 10019. James A. Mitarotonda is the Managing Member of Barington Companies Investors, LLC. The general partner of Barington Investments, L.P. is Barington Companies Advisors, LLC. Barington Companies Advisors, LLC is a Delaware limited liability company. The principal business of Barington Companies Advisors, LLC is serving as the general partner of Barington Investments, L.P. The address of the principal business and principal office of Barington Companies Advisors, LLC is 888 Seventh Avenue, 17th Floor, New York, New York 10019. James A. Mitarotonda is the Managing Member of Barington Companies Advisors, LLC. - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 17 OF 33 PAGES - ------------------------------ --------------------- The investment advisor of Barington Companies Offshore Fund, Ltd. is Barington Offshore Advisors II, LLC. Barington Offshore Advisors II, LLC is a Delaware limited liability company. The principal business of Barington Offshore Advisors II, LLC is serving as the investment advisor of Barington Companies Offshore Fund, Ltd. The address of the principal business and principal office of Barington Offshore Advisors II, LLC is 888 Seventh Avenue, 17th Floor, New York, New York 10019. James A. Mitarotonda is the Managing Member of Barington Offshore Advisors II, LLC. Barington Companies Investors, LLC, Barington Companies Advisors, LLC and Barington Offshore Advisors II, LLC are each majority-owned subsidiaries of Barington Capital Group, L.P. Barington Capital Group, L.P. is a New York limited partnership. The principal business of Barington Capital Group, L.P. is acquiring, holding and disposing of investments in various companies. The address of the principal business and principal office of Barington Capital Group, L.P. is 888 Seventh Avenue, 17th Floor, New York, New York 10019. The general partner of Barington Capital Group, L.P. is LNA Capital Corp. LNA Capital Corp. is a Delaware corporation. The principal business of LNA Capital Corp. is serving as the general partner of Barington Capital Group, L.P. The address of the principal business and principal office of LNA Capital Corp. is c/o Barington Capital Group, L.P., 888 Seventh Avenue, 17th Floor, New York, New York 10019. James A. Mitarotonda is the sole stockholder and director of LNA Capital Corp. The executive officers of LNA Capital Corp. and their principal occupations and business addresses are set forth on Schedule II and incorporated by reference in this Item 2. The principal occupation of Mr. Mitarotonda is serving as the Chairman and Chief Executive Officer of Barington Capital Group, L.P. The business address of Mr. Mitarotonda is c/o Barington Capital Group, L.P., 888 Seventh Avenue, 17th Floor, New York, New York 10019. Clinton Multistrategy Master Fund, Ltd. is a Cayman Islands company. The principal business of Clinton Multistrategy Master Fund, Ltd. is to invest in securities. The address of the principal business and principal office of Clinton Multistrategy Master Fund, Ltd. is c/o Fortis Fund Services (Cayman) Limited, P.O. Box 2003 GT, Grand Pavilion Commercial Centre, 802 West Bay Road, Grand Cayman, Cayman Islands. The directors of Clinton Multistrategy Master Fund, Ltd. and their principal occupations and business addresses are set forth on Schedule III and incorporated by reference in this Item 2. Clinton Multistrategy Master Fund, Ltd. has no executive officers. Clinton Special Opportunities Master Fund, Ltd. is a Cayman Islands company. The principal business of Clinton Special Opportunities Master Fund, Ltd. is to invest in securities. The address of the principal business and principal office of Clinton Special Opportunities Master Fund, Ltd. is c/o Fortis Fund Services (Cayman) Limited, P.O. Box 2003 GT, Grand Pavilion Commercial Centre, 802 West Bay Road, Grand Cayman, Cayman Islands. The directors of Clinton Special Opportunities Master Fund, Ltd. and their principal occupations and business addresses are set forth on Schedule IV and incorporated by reference in this Item 2. Clinton Special Opportunities Master Fund, Ltd. has no executive officers. Clinton Magnolia Master Fund, Ltd. is a Cayman Islands exempted company. The principal business of Clinton Magnolia Master Fund, Ltd. is to invest in securities. The address of the principal business and principal office of Clinton Magnolia Master Fund, Ltd. is c/o Fortis Fund Services (Cayman) Limited, P.O. Box 2003GT, Grand Pavilion Commercial Centre, 802 West Bay Road, Grand Cayman, Cayman Islands. The directors of Clinton Magnolia Master Fund, Ltd. and their principal occupations and business addresses are set forth on Schedule V and incorporated by reference in this Item 2. Clinton Magnolia Master Fund, Ltd. has no executive officers. - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 18 OF 33 PAGES - ------------------------------ --------------------- The investment manager of Clinton Multistrategy Master Fund, Ltd., Clinton Special Opportunities Master Fund, Ltd., and Clinton Magnolia Master Fund, Ltd., is Clinton Group, Inc. Clinton Group, Inc. is a Delaware corporation. The principal business of Clinton Group, Inc. is investing for funds and accounts under its management. The address of the principal business and principal office of Clinton Group, Inc. is 9 West 57th Street, 26th Floor, New York, New York 10019. Mr. Hall is the Chief Investment Officer and President of Clinton Group, Inc. The business address of Mr. Hall is set forth above. The executive officers and directors of Clinton Group, Inc. and their principal occupations and business addresses are set forth on Schedule VI and incorporated by reference in this Item 2. The Reporting Entities do not believe that certain of the foregoing information is called for by the Items of Schedule 13D and are disclosing it for supplemental informational purposes only. Information with respect to each of the Reporting Entities is given solely by such Reporting Entity and no Reporting Entity shall have responsibility for the accuracy or completeness of information supplied by another Reporting Entity. (d) - (e) During the last five years, none of the Reporting Entities or any other person identified in response to this Item 2 was convicted in a criminal proceeding (excluding traffic violations and similar misdemeanors) or was 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. (f) Each natural person identified in Item 2 is a citizen of the United States, other than Graham Cook, a director of Barington Companies Offshore Fund, Ltd., who is a citizen of the United Kingdom, Jonathan Clipper, a director of Barington Companies Offshore Fund, Ltd., who is a citizen of Bermuda and the United Kingdom, Jane Fleming, a director of Clinton Multistrategy Master Fund, Ltd., who is a citizen of the United Kingdom, Dennis Hunter, a director of Clinton Multistrategy Master Fund, Ltd. and Clinton Special Opportunities Master Fund, Ltd., who is a citizen of the United Kingdom, Roger Hanson, a director of Clinton Multistrategy Master Fund, Ltd. and Clinton Special Opportunities Master Fund, Ltd., who is a citizen of the United Kingdom, Blair Gauld, a director of Clinton Multistrategy Master Fund, Ltd., who is a citizen of New Zealand Cassandra Powell, a director of Clinton Special Opportunities Master Fund, Ltd., who is a citizen of the Cayman Islands, and Sasha Castle, the Assistant Secretary of Barington Companies Offshore Fund, Ltd., who is a citizen of Bermuda. Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION. All of the purchases of Common Stock and presently exercisable American-style call options by the Reporting Entities were funded by working capital, which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business. The amount of funds expended for purchases of Common Stock reported herein was approximately $40,109,913.73 by Barington Companies Equity Partners, L.P., $67,440,283.84 by Barington Companies Offshore Fund Ltd., $26,076,771.18 by Barington Investments, L.P., $3,746,386 by Clinton Multistrategy Master Fund, Ltd., $2,164,977 by Clinton Special Opportunities Master Fund, Ltd., and $9,270,829 by Clinton Magnolia Master Fund, Ltd. The amount of funds expended for purchases of presently exercisable call options to acquire Common Stock reported herein was approximately $54,987.00 by Barington Companies Equity Partners, L.P., $32,035.96 by Barington Investments, L.P., $96,267.04 by Barington Companies Offshore Fund, Ltd., $134,264 by Clinton Multistrategy Master Fund, Ltd., $70,680 by Clinton Special Opportunities Master Fund, Ltd., and $885,240 by Clinton Magnolia Master Fund, Ltd. - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 19 OF 33 PAGES - ------------------------------ --------------------- Item 4. PURPOSE OF TRANSACTION. On September 25, 2008, George E. Hall, Chairman and Chief Executive Officer of Clinton Group, Inc., and James A. Mitarotonda, Chairman and Chief Executive Officer of Barington Capital Group, L.P., delivered a letter (the "September 2008 Letter") to the board of directors of the Company (the "Board") recommending that the Issuer repurchase all of the Issuer's outstanding shares of Class B common stock at a price to be determined, and that a committee of independent directors be established to consider the repurchase and to advise the Board on the appropriate premium above the trading price of the Class A common stock to be offered for such Class B shares. The Reporting Persons believe that the repurchase of the Class B shares, which provide Class B shareholders with the ability to elect 2/3 of the members of the Board, and the resulting creation of a more customary governance structure, would significantly benefit the Issuer and all of its shareholders. The September 2008 Letter also urges the Issuer to call a Special Meeting of Shareholders as soon as possible to authorize the Issuer to effect the repurchase described above. If the repurchase of the Class B shares is endorsed by the shareholders and accepted by the holders of Class B shares, the September 2008 Letter further urges the Board to take whatever steps are necessary to create a Board that is more representative of a single class of public shareholders, including possibly expanding the size of the Board. A copy of the September 2008 Letter is attached hereto at Exhibit 99.1 and is incorporated herein by reference. The Reporting Entities have entered into a Letter Agreement, dated September 25, 2008, which Agreement is described in Item 6 of this Schedule 13D and is attached hereto as Exhibit 99.2. Except as set forth in this Item 4, none of the Reporting Entities has any present plans or proposals that relate to or would result in any of the actions specified in clauses (a) through (j) of the instructions to Item 4 of Schedule 13D. The Reporting Entities intend to review their investment in the Company on a continuing basis. Depending on various factors including, without limitation, the willingness of the Company's management team and Board of Directors to implement the suggestions of the Reporting Entities, the Company's financial position and business strategy, the price levels of the shares of Common Stock, other investment opportunities available to the Reporting Entities, conditions in the securities markets and general economic and industry conditions, the Reporting Entities may in the future take such actions with respect to their investment in the Company as they deem appropriate including, without limitation, seeking Board representation, making proposals to the Company concerning changes to the capitalization, ownership structure, management or operations of the Company, purchasing additional shares of Common Stock, selling some or all of their shares of Common Stock, engaging in short selling of or any hedging or similar transactions with respect to the Common Stock and/or otherwise changing their intention with respect to any and all matters referred to in clauses (a) through (3) of the instructions to Item 4 of Schedule 13D. Item 5. INTEREST IN SECURITIES OF THE ISSUER. (a) - (b) As of September 24, 2008, Barington Companies Equity Partners, L.P. beneficially owned an aggregate of 591,862 shares of Common Stock, which includes 45,000 shares of Common Stock subject to call options, representing approximately 0.85% of the Issued and Outstanding Shares. As of September 24, 2008, Barington Investments, L.P. beneficially owned 341,298 shares of Common Stock, which includes 26,200 shares of Common Stock subject to call options, representing approximately 0.49% of the Issued and Outstanding Shares. As of September 24, 2008, Barington Companies Offshore Fund, Ltd. beneficially owned 1,033,209 shares of Common Stock, which includes 78,800 shares of Common Stock subject to call options, representing approximately 1.49% of the Issued and Outstanding Shares. As the general partner of Barington Companies Equity Partners, L.P., Barington Companies Investors, LLC may be deemed to beneficially own the 591,862 shares of Common Stock beneficially owned by Barington Companies Equity Partners, L.P., which includes 45,000 shares of Common Stock subject to call options, representing approximately 0.85% of the Issued and Outstanding Shares. As the general partner of Barington Investments, L.P., Barington Companies Advisors, LLC may be deemed to beneficially own the 341,298 shares of Common Stock beneficially owned by Barington Investments, L.P., which includes 26,200 shares of Common Stock subject to call options, representing approximately 0.49% of the Issued and Outstanding Shares. As the investment advisor to Barington Companies Offshore Fund, Ltd., Barington Offshore Advisors II, LLC may be deemed to beneficially own the 1,033,209 shares of Common Stock beneficially owned by Barington Companies Offshore Fund, Ltd., which includes 78,800 shares of Common Stock subject to call options, representing approximately 1.49% of the Issued and Outstanding Shares. As the majority member of Barington Companies Investors, LLC, Barington Companies Advisors, LLC and Barington Offshore Advisors II, LLC, Barington Capital Group, L.P. may be deemed to beneficially own the 591,862 shares of Common Stock beneficially owned by Barington Companies Equity Partners, L.P., the 341,298 shares of Common Stock beneficially owned by Barington Investments, L.P. and the 1,033,209 shares of Common Stock beneficially owned by Barington Companies Offshore Fund, Ltd., constituting an aggregate of 1,966,369 shares of Common Stock, including an aggregate of 150,000 shares of Common Stock subject to call options, representing approximately 2.83% of the Issued and Outstanding Shares. As the general partner of Barington Capital Group, L.P., LNA Capital Corp. may be deemed to beneficially own the 591,862 shares of Common Stock beneficially owned by Barington Companies Equity Partners, L.P., the 341,298 shares of Common Stock beneficially owned by Barington Investments, L.P. and the 1,033,209 shares of Common Stock beneficially owned by Barington Companies Offshore Fund, Ltd., constituting an aggregate of 1,966,369 shares of Common Stock, including an aggregate of 150,000 shares of Common Stock subject to call options, representing approximately 2.83% of the Issued and Outstanding Shares. As the sole stockholder and director of LNA Capital Corp., James A. Mitarotonda may be deemed to beneficially own the 591,862 shares of Common Stock beneficially owned by Barington Companies Equity Partners, L.P., the 341,298 shares of Common Stock beneficially owned by Barington Investments, L.P. and the 1,033,209 shares of Common Stock beneficially owned by Barington Companies Offshore Fund, Ltd., constituting an aggregate of 1,966,369 shares of Common Stock, including an aggregate of 150,000 shares of Common Stock subject to call options, representing approximately 2.83% of the Issued and Outstanding Shares. Mr. Mitarotonda has sole voting and dispositive power with respect to the 591,862 shares of Common Stock beneficially owned by Barington Companies Equity Partners, L.P., which includes 45,000 shares of Common Stock subject to call options, the 341,298 shares of Common Stock beneficially owned by Barington Investments, L.P., which includes 26,200 shares of Common Stock subject to call options, and the 1,033,209 shares of Common Stock beneficially owned by Barington Companies Offshore Fund, Ltd., which includes 78,800 shares of Common Stock subject to call options. Mr. Mitarotonda disclaims beneficial ownership of any such shares except to the extent of his pecuniary interest therein. - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 20 OF 33 PAGES - ------------------------------ --------------------- As of September 24, 2008, Clinton Multistrategy Master Fund, Ltd. beneficially owned an aggregate of 433,235 shares of Common Stock, which includes 129,300 shares of Common Stock subject to call options, representing approximately 0.62% of the Issued and Outstanding Shares. As of September 24, 2008, Clinton Special Opportunities Master Fund, Ltd. beneficially owned an aggregate of 206,913 shares of Common Stock, which includes 26,100 shares of Common Stock subject to call options, representing approximately 0.3% of the Issued and Outstanding Shares. As of September 24, 2008, Clinton Magnolia Master Fund, Ltd. beneficially owned an aggregate of 1,330,981 shares of Common Stock, which includes 129,300 shares of Common Stock subject to call options, representing approximately 1.92 % of the Issued and Outstanding Shares. By virtue of investment management agreements with each of Clinton Multistrategy Master Fund, Ltd., Clinton Special Opportunities Master Fund, Ltd. and Clinton Magnolia Master Fund, Ltd., Clinton Group, Inc. may be deemed to beneficially own the 433,235 shares of Common Stock beneficially owned by Clinton Multistrategy Master Fund, Ltd., the 206,913 shares of Common Stock beneficially owned by Clinton Special Opportunities Master Fund, Ltd. and the 1,330,981 shares of Common Stock beneficially owned by Clinton Magnolia Master Fund, Ltd., constituting an aggregate of 1,971,129 shares of Common Stock, including an aggregate of 787,500 shares of Common Stock subject to call options, representing approximately 2.84% of the Issued and Outstanding Shares. By virtue of his direct and indirect control of Clinton Group, Inc., Mr. Hall may be deemed to beneficially own the 433,235 shares of Common Stock beneficially owned by Clinton Multistrategy Master Fund, Ltd., the 206,913 shares of Common Stock beneficially owned by Clinton Special Opportunities Master Fund, Ltd., and the 1,330,981 shares of Common Stock beneficially owned by Clinton Magnolia Master Fund, Ltd., constituting an aggregate of 1,971,129 shares of Common Stock, including an aggregate of 787,500 shares of Common Stock subject to call options, representing approximately 2.84% of the Issued and Outstanding Shares. By virtue of investment management agreements with each of Clinton Multistrategy Master Fund, Ltd., Clinton Special Opportunities Master Fund, Ltd. and Clinton Magnolia Master Fund, Ltd., Clinton Group, Inc. has the power to vote or direct the voting, and to dispose or direct the disposition, of the 433,235 shares of Common Stock beneficially owned by Clinton Multistrategy Master Fund, Ltd., the 206,913 shares of Common Stock beneficially owned by Clinton Special Opportunities Master Fund, Ltd. and the 1,330,981 shares of Common Stock beneficially owned by Clinton Magnolia Master Fund, Ltd. By virtue of his direct and indirect control of Clinton Group, Inc., Mr. Hall is deemed to have shared voting power and shared dispositive power with respect to all shares of Common Stock as to which Clinton Group, Inc. has voting power or dispositive power. Accordingly, Clinton Group, Inc. and Mr. Hall are deemed to have shared voting and shared dispositive power with respect to the 433,235 shares of Common Stock beneficially owned by Clinton Multistrategy Master Fund, Ltd., the 206,913 shares of Common Stock beneficially owned by Clinton Special Opportunities Master Fund, Ltd. and the 1,330,981 shares of Common Stock beneficially owned by Clinton Magnolia Master Fund, Ltd. Except to the extent expressly stated herein, each Reporting Entity disclaims beneficial ownership of any shares of Common Stock beneficially owned by any other Reporting Entity. The Reporting Entities do not believe that certain of the foregoing information is called for by the Items of Schedule 13D and are disclosing such information for supplemental informational purposes only. Information with respect to each of the Reporting Entities is given solely by such Reporting Entity and no Reporting Entity shall have responsibility for the accuracy or completeness of information supplied by another Reporting Entity. (c) Information concerning all transactions in shares of Common Stock effected by the Reporting Entities during the last sixty days is set forth in the Schedule VII attached hereto and incorporated herein by reference. (d) Not applicable. (e) Not applicable. - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 21 OF 33 PAGES - ------------------------------ --------------------- Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDING OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER The Reporting Entities have entered into a Letter Agreement dated September 25, 2008, regarding certain conduct of the Reporting Entities. The Letter Agreement includes, but is not limited to, an agreement by the parties to (i) consult with each other with respect to all purchases and sales of Common Stock, (ii) share expenses incurred in connection with the Reporting Entities' activities, and (iii) jointly approve any filing with the SEC, press release or stockholder communication. Any party to the Letter Agreement may terminate his/its obligations under the Letter Agreement on 24 hours' written notice to all other parties. A copy of the Letter Agreement is attached hereto as Exhibit 99.2 and is incorporated by reference herein. Barington Companies Advisors, LLC is compensated for its services as the general partner of Barington Investments, L.P. by an affiliate of Millennium Partners, L.P., the limited partner of Barington Investments, L.P., pursuant to a separate agreement. Certain of the Reporting Entities have entered into, and may, from time to time, enter into in the future, certain publicly traded, American-style call and put option market contracts with unrelated third parties. As of September 24, 2008, Barington Companies Equity Partners, L.P., Barington Investments, L.P. and Barington Companies Offshore Fund, Ltd. beneficially owned 45,000, 26,200 and 78,800 shares of Common Stock, respectively, pursuant to American-style call options with strike prices ranging from $12.50 to $15.00 and expiration dates ranging from October 18, 2008 to November 22, 2008. As of September 24, 2008, Clinton Multistrategy Master Fund, Ltd., Clinton Special Opportunities Master Fund, Ltd., and Clinton Magnolia Master Fund, Ltd. beneficially owned 129,300, 26,100 and 632,100 shares of Common Stock, respectively, pursuant to American-style call options with strike prices ranging from $7.50 to $15.00 and expiration dates ranging from October 18, 2008 to February 21, 2009. Certain of the Reporting Entities may, from time to time, enter into and dispose of cash-settled equity swap or other similar transactions with one or more counterparties, which transactions may be significant in amount. The profit, loss and/or return on such contracts may be wholly or partially dependent on the market value of the Common Stock. The Reporting Entities are parties to an agreement with respect to the joint filing of this Statement and any amendments thereto. A copy of such agreement is attached hereto as Exhibit 99.3 and is incorporated by reference herein. Except as otherwise set forth herein, the Reporting Entities do not have any contract, arrangement, understanding or relationship with any person with respect to the securities of the Company. The Reporting Entities do not believe that certain of the foregoing information is called for by the Items of Schedule 13D and are disclosing such information for supplemental informational purposes only. Information with respect to each of the Reporting Entities is given solely by such Reporting Entity and no Reporting Entity shall have responsibility for the accuracy or completeness of information supplied by another Reporting Entity. Item 7. MATERIAL TO BE FILED AS EXHIBITS. 99.1 September 2008 Letter, dated September 25, 2008. 99.2 Letter Agreement among Barington Companies Equity Partners, L.P., Barington Companies Investors, LLC, Barington Investments, L.P., Barington Companies Advisors, LLC, Barington Companies Offshore Fund, Ltd., Barington Offshore Advisors II, LLC, Barington Capital Group, L.P., LNA Capital Corp., James A. Mitarotonda, Clinton Multistrategy Master Fund, Ltd., Clinton Special Opportunities Master Fund, Ltd., Clinton Magnolia Master Fund, Ltd., Clinton Lexington Master Fund, L.P., Clinton Group, Inc. and George E. Hall dated September 25, 2008. 99.3 Joint Filing Agreement, dated September 25, 2008. - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 22 OF 33 PAGES - ------------------------------ --------------------- 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: September 25, 2008 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 BARINGTON INVESTMENTS, L.P. By: Barington Companies Advisors, LLC, its general partner By: /s/ James A. Mitarotonda ------------------------ Name: James A. Mitarotonda Title: Managing Member BARINGTON COMPANIES ADVISORS, LLC By: /s/ James A. Mitarotonda ------------------------ Name: James A. Mitarotonda Title: Managing Member - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 23 OF 33 PAGES - ------------------------------ --------------------- BARINGTON COMPANIES OFFSHORE FUND, LTD. By: /s/ James A. Mitarotonda ------------------------ Name: James A. Mitarotonda Title: Authorized Signatory BARINGTON OFFSHORE ADVISORS II, LLC By: /s/ James A. Mitarotonda ------------------------ Name: James A. Mitarotonda Title: Managing Member BARINGTON CAPITAL GROUP, L.P. By: LNA Capital Corp., its general partner By: /s/ James A. Mitarotonda ------------------------ Name: James A. Mitarotonda Title: President and CEO LNA CAPITAL CORP. By: /s/ James A. Mitarotonda ------------------------ Name: James A. Mitarotonda Title: President and CEO /s/ James A. Mitarotonda ------------------------ James A. Mitarotonda - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 24 OF 33 PAGES - ------------------------------ --------------------- CLINTON MULTISTRATEGY MASTER FUND, LTD. By: Clinton Group, Inc., its investment manager By: /s/ Francis Ruchalski --------------------- Name: Francis Ruchalski Title: Chief Financial Officer CLINTON SPECIAL OPPORTUNITIES MASTER FUND, LTD. By: Clinton Group, Inc., its investment manager 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 CLINTON GROUP, INC. By: /s/ Francis Ruchalski --------------------- Name: Francis Ruchalski Title: Chief Financial Officer /s/ George E. Hall ------------------ George E. Hall - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 25 OF 33 PAGES - ------------------------------ --------------------- SCHEDULE I Directors and Officers of Barington Companies Offshore Fund, Ltd.
Name and Position Principal Occupation Principal Business Address - ------------------------------------ -------------------------------------- -------------------------------------- Sebastian E. Cassetta Senior Managing Director and 888 Seventh Avenue Director and Treasurer Chief Operating Officer of Barington 17th Floor Capital Group, L.P. New York, NY 10019 Jonathan Clipper Managing Director of 7 Reid Street, Suite 108 Director Bedford Management Ltd Hamilton HM11, Bermuda Graham Cook Director/Manager, Corporate Services Bison Court Director of Bison Financial Services, Ltd. P.O. Box 3460 Road Town, Tortola British Virgin Islands Citigroup Fund Services, Ltd. Fund Administration Washington Mall 1, 3rd Flr. Secretary 22 Church Street Hamilton HM11, Bermuda Sasha Castle Asst. Vice President, Washington Mall 1, 3rd Flr. Assistant Secretary Corporate Dept. of Citigroup Reid Street Fund Services (Bermuda) Ltd. Hamilton HM11, Bermuda
- ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 26 OF 32 PAGES - ------------------------------ --------------------- SCHEDULE II Officers of LNA Capital Corp.
Name and Position Principal Occupation Principal Business Address - -------------------------------- ------------------------------------------ -------------------------------------- James A. Mitarotonda Chairman and Chief Executive Officer 888 Seventh Avenue President and CEO of Barington Capital Group, L.P. 17th Floor New York, NY 10019 Sebastian E. Cassetta Senior Managing Director and Chief 888 Seventh Avenue Secretary and Treasurer Operating Officer of Barington Capital 17th Floor Group, L.P. New York, NY 10019
- ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 27 OF 33 PAGES - ------------------------------ --------------------- SCHEDULE III Directors of Clinton Multistrategy Master Fund, Ltd.
Name and Position Principal Occupation Principal Business Address - ------------------------------------ -------------------------------------- -------------------------------------- Jane Fleming Client Accountant of Queensgate Bank & Trust Director Queensgate Bank & Trust Company Ltd. Company Ltd. Harbour Place, 5th Floor 103 South Church Street P.O. Box 30464 SMB Grand Cayman, Cayman Islands Dennis Hunter Director of Queensgate Bank & Trust Queensgate Bank & Trust Director Company Ltd. Company Ltd. Harbour Place, 5th Floor 103 South Church Street P.O. Box 30464 SMB Grand Cayman, Cayman Islands Roger Hanson Director of dms Management Ltd. dms Management Ltd. Director P.O. Box 31910 SMB Ansbacher House 20 Genesis Close Grand Cayman, Cayman Islands Blair Gauld Director of Queensgate Bank & Trust Queensgate Bank & Trust Director Company Ltd. Company Ltd. Harbour Place, 5th Floor 103 South Church Street P.O. Box 30464 SMB Grand Cayman, Cayman Islands
- ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 28 OF 33 PAGES - ------------------------------ --------------------- SCHEDULE IV Directors of Clinton Special Opportunities Master Fund, Ltd.
Name and Position Principal Occupation Principal Business Address - ------------------------------------ -------------------------------------- -------------------------------------- Dennis Hunter Director of Queensgate Bank & Trust Queensgate Bank & Trust Director Company Ltd. Company Ltd. Harbour Place, 5th Floor 103 South Church Street P.O. Box 30464 SMB Grand Cayman, Cayman Islands Roger Hanson Director of dms Management Ltd. dms Management Ltd. Director P.O. Box 31910 SMB Ansbacher House 20 Genesis Close Grand Cayman, Cayman Islands Cassandra Powell Senior Manager of Queensgate Bank & Queensgate Bank & Trust Director Trust Company Ltd. Company Ltd. Harbour Place, 5th Floor 103 South Church Street P.O. Box 30464 SMB Grand Cayman, Cayman Islands
- ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 29 OF 33 PAGES - ------------------------------ --------------------- SCHEDULE V Directors of Clinton Magnolia Master Fund, Ltd.
Name and Position Principal Occupation Principal Business Address - ------------------------------------ -------------------------------------- -------------------------------------- Jane Fleming Client Accountant of Queensgate Bank Queensgate Bank & Trust Director & Trust Company Ltd. Company Ltd. Harbour Place, 5th Floor 103 South Church Street P.O. Box 30464 SMB Grand Cayman, Cayman Islands Dennis Hunter Director of Queensgate Bank & Trust Queensgate Bank & Trust Director Company Ltd. Company Ltd. Harbour Place, 5th Floor 103 South Church Street P.O. Box 30464 SMB Grand Cayman, Cayman Islands Roger Hanson Director of dms Management Ltd. dms Management Ltd. Director P.O. Box 31910 SMB Ansbacher House 20 Genesis Close Grand Cayman, Cayman Islands
- ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 30 OF 33 PAGES - ------------------------------ --------------------- SCHEDULE VI Directors and Executive Officers of Clinton Group, Inc.
Name and Position Principal Occupation Principal Business Address - ------------------------------------ -------------------------------------- -------------------------------------- George E. Hall Director and President of 9 West 57th Street Clinton Group, Inc. 26th Floor New York, NY 10019 Francis A. Ruchalski Director and Chief Financial Officer 9 West 57th Street of Clinton Group, Inc. 26th Floor New York, NY 10019 Wendy Ruberti General Counsel and Assistant 9 West 57th Street Secretary of Clinton Group, Inc. 26th Floor New York, NY 10019 John L. Hall Director of Clinton Group, Inc. 9 West 57th Street 26th Floor New York, NY 10019
- ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 31 OF 33 PAGES - ------------------------------ --------------------- SCHEDULE VII This schedule sets forth information with respect to each purchase and sale of Common Stock which were effectuated by a Reporting Entity during the past 60 days. All transactions were effectuated in the open market through a broker. Barington Companies Equity Partners, L.P. DATE OF TRADE SHARES PURCHASED (SOLD) PRICE PER SHARE ------------- ----------------------- --------------- 8/15/2008 (1,500) 20.0000 8/18/2008 (7,525) 12.3257 Barington Investments, L.P. DATE OF TRADE SHARES PURCHASED (SOLD) PRICE PER SHARE ------------- ----------------------- --------------- 8/15/2008 (1,000) 20.0000 8/18/2008 (4,350) 12.3257 Barington Companies Offshore Fund, Ltd. DATE OF TRADE SHARES PURCHASED (SOLD) PRICE PER SHARE ------------- ----------------------- --------------- 8/15/2008 (2,500) 20.0000 8/18/2008 (13,125) 12.3257 - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 32 OF 33 PAGES - ------------------------------ --------------------- Clinton Magnolia Master Fund, Ltd. DATE OF TRADE SHARES PURCHASED (SOLD) PRICE PER SHARE ------------- ---------------------- --------------- 7/30/2008 4,000 $ 9.95 7/30/2008 15,000 10.67 8/11/2008 2,600 11.00 8/12/2008 (65,500) 11.76 8/26/2008 43,500 11.25 8/29/2008 15,000 12.36 9/2/2008 41,100 13.56 9/3/2008 5,000 13.39 9/3/2008 25,000 13.50 9/4/2008 37,100 13.33 9/8/2008 12,000 14.36 9/8/2008 (15,000) 14.27 9/9/2008 65,000 15.14 9/12/2008 150,000 12.92 9/15/2008 33,900 11.98 9/17/2008 40,434 11.93 9/17/2008 45,720 11.95 9/19/2008 50,000 14.03 9/19/2008 (258,500) 12.50 - ------------------------------ --------------------- CUSIP NO. 254067101 SCHEDULE 13D PAGE 33 OF 33 PAGES - ------------------------------ --------------------- Clinton Multistrategy Master Fund, Ltd. DATE OF TRADE SHARES PURCHASED (SOLD) PRICE PER SHARE -------------- ---------------------- --------------- 7/30/2008 4,000 $ 9.95 7/30/2008 15,000 10.67 8/12/2008 (149,500) 11.76 8/29/2008 15,000 12.36 9/8/2008 8,000 14.36 9/8/2008 (10,000) 14.27 9/17/2008 53,340 11.95 9/17/2008 47,173 11.93 9/18/2008 15,100 12.57 9/19/2008 (37,500) 12.50 Clinton Special Opportunities Master Fund, Ltd. DATE OF TRADE SHARES PURCHASED (SOLD) PRICE PER SHARE -------------- ---------------------- --------------- 9/16/2008 45,000 $12.14 9/16/2008 47,000 12.19 9/17/2008 47,173 11.93 9/17/2008 53,340 11.95 9/18/2008 62,500 11.75 9/19/2008 (74,200) 12.50 EX-99.1 2 p08-1376ex99_1.txt EXHIBIT 99.1 Clinton Group, Inc. Barington Capital Group, L.P. 9 West 57th Street 888 Seventh Avenue New York, NY 10019 New York, NY 10019 September 25, 2008 The Board of Directors Dillard's, Inc. 1600 Cantrell Road Little Rock, Arkansas 72201 To the Board of Directors of Dillard's, Inc.: We represent a group of shareholders that beneficially owns 5.67% of the outstanding shares of Class A Common Stock (the "Class A Shares") of Dillard's, Inc. (the "Company" or "Dillard's"). As we have stated in our previous correspondence with the Company, we believe there is tremendous intrinsic value in the Dillard's franchise. We also believe that the public equity markets in general justifiably reward companies where management teams do not have effective control. In the case of Dillard's, however, it is clear to us that the Company and its public shareholders are being penalized because of its A/B share class structure. Currently, a number of the senior executives of Dillard's control the Company's Class B Common Stock (the "Class B Shares") through their ownership interests in W.D. Company, which itself owns approximately 99.4% of the Class B Shares. While the Class B Shares have the same per share economic interest in the Company as the Class A Shares, such shares provide the Class B shareholders with effective control over the Company through their ability to elect two-thirds of the members of Dillard's Board of Directors. In our view, the Company and all of its shareholders would be best served if all of the Class B Shares were repurchased by the Company, permitting Dillard's to have a more customary capital structure. As significant holders of the Class A Shares, we readily acknowledge that the Class B Shares warrant a SUBSTANTIAL PREMIUM above the trading price of the Class A Shares as a result of their ability to elect a majority of the Board. However, given that there are only 4,010,000 Class B Shares outstanding, even a significant premium for the Class B Shares would represent only a modest per share cost for the approximately 70 million Class A Shares outstanding. The net effect of such a transaction would be to fully and fairly compensate the holders of Class B Shares for relinquishing the power to elect a majority of the Board while creating significant value for the Company's shareholders through the establishment of a more customary one share/one vote capital structure. We believe a committee of independent directors should be created immediately to consider such a transaction and to advise the Board on the appropriate premium to be paid for the Class B Shares. We think it would be appropriate for a transaction of this nature to be approved by a majority of the Company's shareholders. Therefore, we request you to call a Special Meeting of Shareholders as soon as possible to approve the Company's repurchase of all outstanding Class B Shares at a price to be negotiated prior to the meeting. In the event that such a proposal is endorsed by the shareholders and accepted by the holders of Class B Shares, we further urge you to take whatever steps are necessary to create a Board that is more representative of the resulting single class of public shareholders, including possibly expanding the size of the Board of Directors. It is our strong belief that our proposal would improve the Company's corporate governance and facilitate the creation of significant value for all shareholders of Dillard's, Inc. We are available at your convenience if you have any questions or would like to discuss our recommendations in further detail. Sincerely, /s/George E. Hall /s/James A. Mitarotonda George E. Hall James A. Mitarotonda Chairman and Chief Executive Officer Chairman and Chief Executive Officer Clinton Group, Inc. Barington Capital Group, L.P. EX-99.2 3 p08-1376ex99_2.txt EXHIBIT 99.2 EXHIBIT 99.2 LETTER AGREEMENT WHEREAS, certain of the undersigned are stockholders, direct or beneficial, of Dillard's, Inc., a Delaware corporation (the "Company"); and WHEREAS, (i) Barington Companies Equity Partners, L.P., Barington Companies Investors, LLC, Barington Investments, L.P., Barington Companies Advisors, LLC, Barington Companies Offshore Fund, Ltd., Barington Offshore Advisors II, LLC, Barington Capital Group, L.P., LNA Capital Corp. and James A. Mitarotonda, (together, the "Barington Parties") and (ii) Clinton Multistrategy Master Fund, Ltd., Cliton Special Opportunities Master Fund, Ltd., Clinton Magnolia Master Fund, Ltd., Clinton Group, Inc. and George E. Hall (together, the "Clinton Parties"), wish to enter into this Letter Agreement (the "Letter Agreement") pertaining to their investments in, and activities related to, the Company and its Securities. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, covenant and agree as follows: 1. Barington Capital Group, L.P. and Clinton Group, Inc. each agree to consult with each other regarding all purchases and sales of Securities of the Company by their affiliates. "Securities" shall mean equity securities of the Company, options to purchase or sell equity securities of the Company, and swaps, synthetics and other derivative securities or instruments, the value of which is solely and directly related to equity securities of the Company. Furthermore, so long as this Agreement is in effect, (i) none of the parties shall acquire Securities of the Company if as a result the Group would be deemed to have beneficial ownership of 10% or more of any class of the outstanding equity of the Company without the prior agreement of Barington Capital Group, L.P., or its representatives, and Clinton Group, Inc., or its representatives (collectively, the "Representatives"), (ii) none of the parties shall purchase, sell or otherwise increase or decrease their economic exposure to Securities of the Company if such party reasonably believes that, as a result of such action, the Group or any member thereof would be likely to be required to make any regulatory filing without using their reasonable efforts to give the other parties at least 24 hours prior written notice, and (iii) each of the undersigned shall provide written notice to the other of (a) any of their purchases or sales of Securities of the Company; and (b) any Securities of the Company over which they acquire or dispose of beneficial ownership, no later than 24 hours after each such transaction. 2. The Barington Parties and the Clinton Parties shall each pay 50% of all expenses incurred in connection with the Group's activities. 3. Each of the undersigned agrees that any filing with the Securities and Exchange Commission, press release or stockholder communciation proposed to be made or issued by the Group or any member of the Group in connection with the Group's activities shall be jointly approved by the Representatives, which approval shall not be unreasonably withheld or delayed. 4. The relationship of the parties hereto shall be limited to carrying on the activities of the Group in accordance with the terms of this Agreement. Such relationship shall be construed and deemed to be for the sole and limited purpose of carrying on such activities as described herein. Nothing herein shall be construed to authorize any party to act as an agent for any other party, or to create a joint venture or partnership, or to constitute an indemnification. Except as otherwise expressly provided herein, nothing herein shall restrict any party's right to purchase or sell Securities of the Company, as he/it deems appropriate, in his/its sole discretion, provided that all such sales are made in compliance with all applicable securities laws. 5. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute but one and the same instrument, which may be sufficiently evidenced by one counterpart. 6. In the event of any dispute among the parties hereto arising out of the provisions of this Agreement or their investment in the Company, the parties hereto consent and submit to the exclusive jurisdiction of the Federal and State Courts in the State of New York. 7. Any party hereto may terminate his/its obligations under this Agreement on 24 hours' written notice to all other parties. 8. Each party acknowledges that Kramer Levin Naftalis & Frankel LLP shall act as counsel for both the Group and the Barington Parties relating to their investment in the Company and that Schulte Roth & Zabel LLP shall act as counsel for both the Group and the Clinton Parties relating to their investment in the Company. 9. Each of the undersigned parties hereby agrees that this Group Agreement shall be filed as an exhibit to an amendment to a Schedule 13D. [SIGNATURE PAGE FOLLOWS] IN WITNESS WHEREOF, each of the parties hereto has caused this Group Agreement to be executed as of the twenty-fifth day of September 2008. 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 BARINGTON INVESTMENTS, L.P. By: Barington Companies Advisors, LLC, its general partner By: /s/ James A. Mitarotonda ----------------------------- Name: James A. Mitarotonda Title: Managing Member BARINGTON COMPANIES ADVISORS, LLC By: /s/ James A. Mitarotonda --------------------------- Name: James A. Mitarotonda Title: Managing Member BARINGTON COMPANIES OFFSHORE FUND, LTD. By: /s/ James A. Mitarotonda ---------------------------- Name: James A. Mitarotonda Title: Authorized Signatory BARINGTON OFFSHORE ADVISORS II, LLC By: /s/ James A. Mitarotonda ------------------------------ Name: James A. Mitarotonda Title: Managing Member BARINGTON CAPITAL GROUP, L.P. By: LNA Capital Corp., its general partner By: /s/ James A. Mitarotonda -------------------------------- Name: James A. Mitarotonda Title: President and CEO LNA CAPITAL CORP. By: /s/James A. Mitarotonda -------------------------------- Name: James A. Mitarotonda Title: President and CEO /s/ James A. Mitarotonda ------------------------------------ James A. Mitarotonda CLINTON MULTISTRATEGY MASTER FUND, LTD. By: Clinton Group, Inc., its investment manager By: /s/ Francis Ruchalski --------------------------------- Name: Francis Ruchalski Title: Chief Financial Officer CLINTON SPECIAL OPPORTUNITIES MASTER FUND, LTD. By: Clinton Group, Inc., its investment manager 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 CLINTON GROUP, INC. By: /s/ Francis Ruchalski -------------------------------- Name: Francis Ruchalski Title: Chief Financial Officer /s/ George E. Hall ----------------------------------- George E. Hall EX-99.3 4 p08-1376ex99_3.txt EXHIBIT 99.3 EXHIBIT 99.3 JOINT FILING AGREEMENT PURSUANT TO RULE 13d-1(k) The undersigned acknowledge and agree that the foregoing statement on Schedule 13D is filed on behalf of each of the undersigned and that all subsequent amendments to this statement on Schedule 13D may be filed on behalf of each of the undersigned without the necessity of filing additional joint filing agreements. The undersigned acknowledge that each shall be responsible for the timely filing of such amendments, and for the completeness and accuracy of the information concerning him or it contained herein and therein, but shall not be responsible for the completeness and accuracy of the information concerning the others, except to the extent that he or it knows that such information is inaccurate. Dated: September 25, 2008 CLINTON MULTISTRATEGY MASTER FUND, LTD. By: Clinton Group, Inc. its investment manager By: /s/ Francis Ruchalski --------------------------- Name: Francis Ruchalski Title: Comptroller CLINTON SPECIAL OPPORTUNITIES MASTER FUND, LTD. By: Clinton Group, Inc. its investment manager By: /s/ Francis Ruchalski --------------------------- Name: Francis Ruchalski Title: Comptroller CLINTON MAGNOLIA MASTER FUND, LTD. By: Clinton Group, Inc., its investment manager By: /s/ Francis Ruchalski --------------------- Name: Francis Ruchalski Title: Chief Financial Officer CLINTON GROUP, INC. By: /s/ Francis Ruchalski --------------------------- Name: Francis Ruchalski Title: Comptroller /s/ George Hall ------------------------------ George Hall 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 BARINGTON INVESTMENTS, L.P. By: Barington Companies Advisors, LLC, its general partner By: /s/ James A. Mitarotonda ------------------------ Name: James A. Mitarotonda Title: Managing Member BARINGTON COMPANIES ADVISORS, LLC By: /s/ James A. Mitarotonda ------------------------ Name: James A. Mitarotonda Title: Managing Member BARINGTON COMPANIES OFFSHORE FUND, LTD. By: /s/ James A. Mitarotonda ------------------------ Name: James A. Mitarotonda Title: Authorized Signatory BARINGTON OFFSHORE ADVISORS II, LLC By: /s/ James A. Mitarotonda ------------------------ Name: James A. Mitarotonda Title: Managing Member BARINGTON CAPITAL GROUP, L.P. By: LNA Capital Corp., its general partner By: /s/ James A. Mitarotonda ------------------------ Name: James A. Mitarotonda Title: President and CEO LNA CAPITAL CORP. By: /s/ James A. Mitarotonda ------------------------ Name: James A. Mitarotonda Title: President and CEO /s/ James A. Mitarotonda ------------------------ James A. Mitarotonda -----END PRIVACY-ENHANCED MESSAGE-----