-----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, EcY7G96++JuZMmiH/BDpXXH7VtZIR8jo5w0I5qZ7Nt5Jn8Ffkltbe/mmsDhsz62F KIPISTmm/ClC/5lOfi/Gjg== 0000950172-99-000049.txt : 19990114 0000950172-99-000049.hdr.sgml : 19990114 ACCESSION NUMBER: 0000950172-99-000049 CONFORMED SUBMISSION TYPE: DEFA14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19990113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DESIGNS INC CENTRAL INDEX KEY: 0000813298 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-FAMILY CLOTHING STORES [5651] IRS NUMBER: 042623104 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: DEFA14A SEC ACT: SEC FILE NUMBER: 000-15898 FILM NUMBER: 99505790 BUSINESS ADDRESS: STREET 1: 66 B STREET CITY: NEEDHAM STATE: MA ZIP: 02194 BUSINESS PHONE: 7814447222 MAIL ADDRESS: STREET 1: 66 B STREET CITY: NEEDHAM STATE: MA ZIP: 02194 DEFA14A 1 CONFIDENTIAL, FOR USE OF THE COMMISSION ONLY SCHEDULE 14A (Rule 14a-101) Information Required In Proxy Statement Schedule 14A Information Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 ------------------------------------------------------------------------------ Filed by the Registrant (X) Filed by a Party other than the Registrant ( ) Check the appropriate box: ( ) Preliminary Proxy Statement ( ) Confidential, for use of the Commission Only (as permitted by Rule 14a-6(e)(2)) ( ) Definitive Proxy Statement (X) Definitive Additional Materials ( ) Soliciting Material Pursuant to Rule 14a-11 (c) or Rule 14a-12 DESIGNS, INC. ------------------------------------------------------------------------------ (Name of Registrant as Specified In Its Charter) ------------------------------------------------------------------------------ (Name of Person(s) Filing Proxy Statement if other than the Registrant) January 13, 1999 Dear Fellow Stockholder: Seymour Holtzman is seeking your consent to remove, without cause, the members of your Board of Directors other than Stanley Berger and to replace them with his handpicked nominees. WE URGE YOU TO REJECT MR. HOLTZMAN'S SELF-INTERESTED SOLICITATION BY SIGNING, DATING AND RETURNING THE ENCLOSED BLUE REVOCATION CARD TODAY. As you know, your Board has formed a Special Committee of independent outside directors for the purpose of maximizing the value of your shares through a sale of your company. Not a single member of management serves on the Special Committee. The Special Committee and its financial advisor, Shields & Company are aggressively seeking buyers for Designs. Shields & Co. has already sent offering materials to a number of potential acquirors, at their request. WE BELIEVE THAT MR. HOLTZMAN'S CONSENT SOLICITATION WILL ONLY HINDER THE PROCESS OF FINDING A BUYER FOR DESIGNS. YOU SHOULD BE AWARE THAT THE NATION'S LEADING SHAREHOLDER VOTING ADVISORY SERVICE AGREES. On January 8, 1999, Institutional Shareholder Services ("ISS") recommended that its clients, including institutional investors, mutual funds and other fiduciaries, NOT CONSENT to Jewelcor's proposals. ISS stated that: "We believe that the independent committee thus far has taken the necessary steps to prepare the company for sale and is far enough along in the process that a board change might delay or hinder potential bids for the company," and "that shareholders will be best served by supporting the current board and letting the auction process continue uninterrupted." ISS recommended that its clients simply discard Jewelcor's WHITE card; or, if they have already executed Jewelcor's White card, sign and date the BLUE card to REVOKE CONSENT. ELECTING MR. HOLTZMAN'S NOMINEES COULD CREATE A POTENTIAL CONFLICT OF INTEREST AND PUT MR. HOLTZMAN IN A POSITION TO NEGOTIATE WITH HIMSELF Mr. Holtzman has recently indicated his interest in making his own bid to acquire your company and requested that he be sent the same offering materials as other potential bidders. At the same time, Mr. Holtzman demanded that Designs remove its existing stockholder rights plan. This would enable Mr. Holtzman to gain control of your Company through a "creeping acquisition" without paying a premium to all stockholders. We cannot know for sure whether Mr. Holtzman wants to gain control of the Board so that he can buy a controlling interest in your Company. HOWEVER, WE BELIEVE THAT IT IS CLEARLY INAPPROPRIATE FOR MR. HOLTZMAN'S SLATE OF NOMINEES TO SERVE ON YOUR BOARD, GIVEN HIS INTEREST AS A POTENTIAL BIDDER. The Special Committee is committed to maximizing the value of your shares in the near term through a sale of Designs. Turning over control of your Board to Seymour Holtzman, in light of his conflicting interests, is not in your best interest. DO NOT BE MISLED BY MR. HOLTZMAN'S SELF-SERVING TACTICS-- ACT NOW TO PROTECT THE VALUE OF YOUR INVESTMENT! We believe that Mr. Holtzman's attacks on the Special Committee's efforts are self-serving and misleading. You should be aware that Mr. Holtzman has rejected a good-faith offer by the Special Committee to appoint one of his nominees to the Board and the Special Committee to participate in the sale process and help evaluate offers to buy Designs. Instead he has opted to pursue his own interests -- at your expense. WE URGE YOU NOT TO SIGN JEWELCOR'S WHITE CONSENT CARD. BUT IT'S NOT TOO LATE, EVEN IF YOU HAVE ALREADY SIGNED A WHITE CONSENT CARD. YOU CAN REVOKE THAT CONSENT BY SIGNING, DATING AND RETURNING THE ENCLOSED BLUE REVOCATION CARD TODAY! On behalf of the Board's Special Committee, I thank you for your continued trust and support. Sincerely, /s/ James G. Groninger James G. Groninger Chairman of the Special Committee IF YOU HAVE ANY QUESTIONS ABOUT GIVING YOUR REVOCATION OF CONSENT, OR REQUIRE ANY ASSISTANCE, PLEASE CALL: INNISFREE M&A INCORPORATED TOLL-FREE (888)750-5834 BANKS AND BROKERS CALL COLLECT: (212) 750-5833 -----END PRIVACY-ENHANCED MESSAGE-----