SC 13D 1 sc13d-factory2u.txt SCHEDULE 13D UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D UNDER THE SECURITIES EXCHANGE ACT OF 1934 * FACTORY 2-U STORES, INC. ------------------------ (Name of Issuer) COMMON STOCK, PAR VALUE $0.01 PER SHARE --------------------------------------- (Title of Class of Securities) 306889403 --------- (CUSIP Number) MARK S. BERGMAN, ESQ. PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP ALDER CASTLE, 10 NOBLE STREET LONDON EC2V 7JU, UNITED KINGDOM 44 20 7367 1600 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) SEPTEMBER 22, 2003 ------------------ (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 which is the subject of this Schedule 13D, and is filing this schedule because of Section 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box [_]. * 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 Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). -------------------------------------------------------------------------------- 1. Name of Reporting Person Quilvest American Equity, Ltd. -------------------------------------------------------------------------------- 2. Check The Appropriate Box If A Member of A Group (a) [_] (b) [_] -------------------------------------------------------------------------------- 3. Sec Use Only -------------------------------------------------------------------------------- 4. Source of Funds OO -------------------------------------------------------------------------------- 5. Check Box If Disclosure of Legal Proceedings Is Required Pursuant To Item 2(d) Or 2(e) [_] -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization British Virgin Islands -------------------------------------------------------------------------------- 7. Sole Voting Power: 1,580,618 Number of Units -------------------------------------------------------- Beneficially 8. Shared Voting Power: -0- Owned By Each -------------------------------------------------------- Reporting 9. Sole Dispositive Power: 1,580,618 Person With -------------------------------------------------------- 10. Shared Dispositive Power: -0- -------------------------------------------------------------------------------- 11. Aggregate Amount Beneficially Owned By Each Reporting Person 1,580,618 -------------------------------------------------------------------------------- 12. Check Box If The Aggregate Amount In Row (11) Excludes Certain Shares [_] -------------------------------------------------------------------------------- 13. Percent of Class Represented By Amount In Row (11) 8.75% (1) -------------------------------------------------------------------------------- 14. Type of Reporting Person CO -------------------------------------------------------------------------------- ------------------------ 1 Based on 18,046,136 shares outstanding as reported in the Company's quarterly report for the period ended August 2, 2003. -------------------------------------------------------------------------------- 1. Name of Reporting Person Quilvest Overseas, Ltd. -------------------------------------------------------------------------------- 2. Check The Appropriate Box If A Member of A Group (a) [_] (b) [_] -------------------------------------------------------------------------------- 3. Sec Use Only -------------------------------------------------------------------------------- 4. Source of Funds OO -------------------------------------------------------------------------------- 5. Check Box If Disclosure of Legal Proceedings Is Required Pursuant To Item 2(d) Or 2(e) [_] -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization British Virgin Islands -------------------------------------------------------------------------------- 7. Sole Voting Power: 1,580,618 Number of Units -------------------------------------------------------- Beneficially 8. Shared Voting Power: -0- Owned By Each -------------------------------------------------------- Reporting 9. Sole Dispositive Power: 1,580,618 Person With -------------------------------------------------------- 10. Shared Dispositive Power: -0- -------------------------------------------------------------------------------- 11. Aggregate Amount Beneficially Owned By Each Reporting Person 1,580,618 -------------------------------------------------------------------------------- 12. Check Box If The Aggregate Amount In Row (11) Excludes Certain Shares [_] -------------------------------------------------------------------------------- 13. Percent of Class Represented By Amount In Row (11) 8.75% (2) -------------------------------------------------------------------------------- 14. Type of Reporting Person CO -------------------------------------------------------------------------------- ------------------------ 2 Based on 18,046,136 shares outstanding as reported in the Company's quarterly report for the period ended August 2, 2003. -------------------------------------------------------------------------------- 1. Name of Reporting Person Quilvest S.A. -------------------------------------------------------------------------------- 2. Check The Appropriate Box If A Member of A Group (a) [_] (b) [_] -------------------------------------------------------------------------------- 3. Sec Use Only -------------------------------------------------------------------------------- 4. Source of Funds OO -------------------------------------------------------------------------------- 5. Check Box If Disclosure of Legal Proceedings Is Required Pursuant To Item 2(d) Or 2(e) [_] -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization Luxembourg -------------------------------------------------------------------------------- 7. Sole Voting Power: 1,580,618 Number of Units -------------------------------------------------------- Beneficially 8. Shared Voting Power: -0- Owned By Each -------------------------------------------------------- Reporting 9. Sole Dispositive Power: 1,580,618 Person With -------------------------------------------------------- 10. Shared Dispositive Power: -0- -------------------------------------------------------------------------------- 11. Aggregate Amount Beneficially Owned By Each Reporting Person 1,580,618 -------------------------------------------------------------------------------- 12. Check Box If The Aggregate Amount In Row (11) Excludes Certain Shares [_] -------------------------------------------------------------------------------- 13. Percent of Class Represented By Amount In Row (11) 8.75% (3) -------------------------------------------------------------------------------- 14. Type of Reporting Person CO -------------------------------------------------------------------------------- ------------------------ 3 Based on 18,046,136 shares outstanding as reported in the Company's quarterly report for the period ended August 2, 2003. ITEM 1. SECURITY AND ISSUER. The title of the class of equity securities of Factory 2-U Stores, Inc., a Delaware corporation (the "Company"), to which this Schedule 13D (this "Statement") relates is the Company's common stock, par value $.01 per share (the "Common Shares"). The address of the principal executive offices of the Company is 4000 Ruffin Road, San Diego, California 92123. ITEM 2. IDENTITY AND BACKGROUND. (a) This Statement is filed by Quilvest American Equity, Ltd., a British Virgin Islands international business company ("QAE"), Quilvest Overseas, Ltd., a British Virgin Islands international business company ("Quilvest Overseas") and Quilvest S.A., a Luxembourg holding company ("Quilvest"). QAE, Quilvest Overseas and Quilvest are referred to collectively in this Statement as the "Reporting Persons." The principal business of QAE is the investment and reinvestment of its resources, directly or through affiliates, in the securities of enterprises in the United States. QAE is a wholly owned subsidiary of Quilvest Overseas. The principal business of Quilvest Overseas is the investment of its resources in private equity marketable securities and investment funds and, through affiliates such as QAE, in securities of other enterprises in various parts of the world. Quilvest Overseas is a wholly owned subsidiary of Quilvest. The shares of Quilvest, which are issued in bearer form, are listed and traded on the Luxembourg Stock Exchange. Quilvest's principal business is serving as an investment holding company. The names of the directors and executive officers of the Reporting Persons are set forth on Schedules 1, 2 and 3 hereto, respectively, which are incorporated herein by reference. (b) The address of the principal office of QAE and Quilvest Overseas is Craigmuir Chambers, P.O. Box 71, Road Town, Tortola, British Virgin Islands. The principal business address of Quilvest is 84, Grand-Rue, L-1660 Luxembourg. The business address of each of the other persons named in Item 2(a) is set forth on Schedules 1, 2 and 3 hereto, which are incorporated herein by reference. (c) The present principal occupation of each individual set forth in Item 2(a) is set forth on Schedules 1, 2 and 3 hereto, which are incorporated herein by reference. (d) None of the Reporting Persons nor, to the best of their knowledge, any of the directors or executive officers of the Reporting Persons has been convicted during the last five years in a criminal proceeding (excluding traffic violations or similar misdemeanors). (e) None of the Reporting Persons nor, to the best of their knowledge, any of the directors or executive officers of the Reporting Persons has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction as a result of which such individual 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) The citizenship of each individual set forth in Item 2(a) is set forth on Schedules 1, 2 and 3 hereto. ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION. On September 26, 2003, QAE received the Common Shares from other subsidiaries of its parent, Quilvest Overseas. Such other subsidiaries are limited partners in Three Cities Fund II L.P., a Delaware limited partnership, and received the Common Shares as a distribution on September 22, 2003. The Common Shares were valued at the closing market price on September 22, 2003 of $4.15 per share. QAE did not pay any consideration for the Common Shares. ITEM 4. PURPOSE OF TRANSACTION QAE acquired the shares for investment purposes. Depending upon investment policies and future evaluations of the business prospects of the Company and upon other developments, including, but not limited to general economic conditions, business conditions and market conditions, QAE may retain or from time to time increase, or dispose of all or a portion of, its holdings, subject to any applicable legal or other restrictions on its ability to do so. Each of the other Reporting Persons reserves the right to acquire, hold or dispose of securities of the Company to the extent deemed advisable in light of its investment policies and other factors. Except as described above, none of the Reporting Persons has any plans or proposals which relate to or would result in: (a) the acquisition by any person of additional securities of the Company, or the disposition of securities of the Company; (b) an extraordinary corporate transaction, such as a merger, reorganisation or liquidation, involving the Company or any of its subsidiaries; (c) a sale or transfer of a material amount of assets of the Company or any of its subsidiaries; (d) any change in the present board of directors or management of the Company, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the board; (e) any material change in the present capitalization or dividend policy of the Company; (f) any other material change in the Company's business or corporate structure; (g) changes in the Company's charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of the Company by any person; (h) causing a class of securities of the Company to be delisted from a National Securities Exchange or to cease to be authorised to be quoted in an inter-dealer quotation system of a registered National Securities Association; (i) a class of equity securities of the Company becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934, as amended; or (j) any action similar to any of those enumerated above. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. (a) As of September 26, 2003, QAE beneficially owned an aggregate of 1,580,618 Common Shares, which constitutes approximately 8.75% of the outstanding Common Shares. Quilvest Overseas may be deemed to beneficially own such shares by reason of its ownership of QAE. Quilvest may be deemed to beneficially own such shares by reason of its ownership of Quilvest Overseas. To the best knowledge of the Reporting Persons, none of the persons named in Item 2(a) beneficially owns any Common Shares. (b) QAE has the sole power to vote, direct the vote of, dispose of or direct the disposition of any and all Common Shares held by QAE. By reason of its ownership of QAE, Quilvest Overseas may be deemed to have the power to direct the vote, or to direct the disposition of, the Common Shares beneficially owned by QAE. By reason of its ownership of Quilvest Overseas, Quilvest may be deemed to have the power to direct the vote, or to direct the disposition of, the Common Shares beneficially owned by QAE. (c) None of the Reporting Persons, nor, to the best of their knowledge, any of the persons listed in Item 2(a) has effected any transaction in the common stock of the Company within the past 60 days. (d) On the basis of its control, through an intermediate holding company, of QAE, the board of directors of Quilvest may be deemed to have the ultimate power to direct the voting or disposition, as well as the application of dividends from, or the proceeds of the sale of, the Common Shares owned by QAE. To the best knowledge of the Reporting Persons, no other person has the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the Common Shares owned by QAE. (e) Not applicable. ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER. None. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS. None. SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: October 3, 2003 QUILVEST AMERICAN EQUITY, LTD. By: /s/ Christian Baillet --------------------------------------- Name: Christian Baillet Title: Chairman By: /s/ Carlo J. Hoffmann --------------------------------------- Name: Carlo J. Hoffmann Title: Treasurer QUILVEST OVERSEAS, LTD. By: /s/ Christian Baillet --------------------------------------- Name: Christian Baillet Title: Chairman By: /s/ Carlo J. Hoffmann --------------------------------------- Name: Carlo J. Hoffmann Title: Treasurer QUILVEST S.A. By: /s/ Christian Baillet --------------------------------------- Name: Christian Baillet Title: Chief Executive Officer By: /s/ Carlo J. Hoffmann --------------------------------------- Name: Carlo J. Hoffmann Title: Secretary General Schedule 1
QUILVEST AMERICAN EQUITY, LTD. ---------------------------------------------------------------------------------------------------------------------- NAME RESIDENCE OR BUSINESS PRINCIPAL OCCUPATION OR CITIZENSHIP ---- ADDRESS CITIZENSHIP EMPLOYMENT AND THE NAME, ----------- ------------------- PRINCIPAL BUSINESS AND ADDRESS OF ORGANIZATION IN WHICH SUCH EMPLOYMENT IS CONDUCTED (IF ANY) ------------------ ------------------------------- ---------------------------- ---------------------------- ---------------------------- Christian Baillet 243, Blvd. St. Germain Director; President F-75007 Paris, Company Director French France ------------------------------- ---------------------------- ---------------------------- ---------------------------- N. Peter Ruys Utoquai 37 Director 8008 Zurich Company Director American Switzerland ------------------------------- ---------------------------- ---------------------------- ---------------------------- Carlo J. Hoffmann 84, Grand Rue L-1660 Luxembourg Company Director Swiss Luxembourg ------------------------------- ---------------------------- ---------------------------- ----------------------------
Schedule 2
QUILVEST OVERSEAS, LTD. ---------------------------------------------------------------------------------------------------------------------- NAME RESIDENCE OR BUSINESS PRINCIPAL OCCUPATION OR CITIZENSHIP ---- ADDRESS CITIZENSHIP EMPLOYMENT AND THE NAME, ----------- ------------------- PRINCIPAL BUSINESS AND ADDRESS OF ORGANIZATION IN WHICH SUCH EMPLOYMENT IS CONDUCTED (IF ANY) ------------------ ------------------------------- ---------------------------- ---------------------------- ---------------------------- Christian Baillet 243, Blvd. St. Germain Director; President F-75007 Paris, Company Director French France ------------------------------- ---------------------------- ---------------------------- ---------------------------- N. Peter Ruys Utoquai 37 Director 8008 Zurich Company Director American Switzerland ------------------------------- ---------------------------- ---------------------------- ---------------------------- Carlo J. Hoffmann 84, Grand Rue L-1660 Luxembourg Company Director Swiss Luxembourg ------------------------------- ---------------------------- ---------------------------- ----------------------------
Schedule 3
QUILVEST S.A. ---------------------------------------------------------------------------------------------------------------------- NAME RESIDENCE OR BUSINESS PRINCIPAL OCCUPATION OR CITIZENSHIP ---- ADDRESS CITIZENSHIP EMPLOYMENT AND THE NAME, ----------- ------------------- PRINCIPAL BUSINESS AND ADDRESS OF ORGANIZATION IN WHICH SUCH EMPLOYMENT IS CONDUCTED (IF ANY) ------------------ ------------------------------- ---------------------------- ---------------------------- ---------------------------- Louis James de Viel Castel 25 bis rue de Constantine Company Director French Director F-75007 Paris, France -------------------------------- ------------------------------------------ ---------------------- -------------------- Christian Baillet 243, Blvd. St. Germain Company Director French Director; CEO F-75007 Paris, France -------------------------------- ------------------------------------------ ---------------------- -------------------- Peter Bemberg Les Arcades du Lac Company Director French Director Chemin de la Falaise, 29 CH-1196 Gland Switzerland -------------------------------- ------------------------------------------ ---------------------- -------------------- Charles de Montalembert 82 Blvd. Arago Company Director French Director F-75013 Paris, France -------------------------------- ------------------------------------------ ---------------------- -------------------- Alvaro Sainz de Vicuna Calle Dr Fleming 3 Company Director Spanish Chairman of the Board 8th Floor Madrid 98036, Spain -------------------------------- ------------------------------------------ ---------------------- -------------------- Andre Elvinger 15 Cote d'Eich Attorney-at-Law Luxembourg Director 1450 Luxembourg Gd. Duchy of Luxembourg -------------------------------- ------------------------------------------ ---------------------- -------------------- Serge de Ganay 57, Rue St. Dominique Company Director French Director F-75007 Paris, France -------------------------------- ------------------------------------------ ---------------------- -------------------- International Advisory Craigmuir Chambers Company Director British Virgin Services (IAS) Road Town, Tortola Islands British Virgin Islands -------------------------------- ------------------------------------------ ---------------------- -------------------- Carlo Hoffmann 84, Grand-Rue Secretary-General Luxembourg Secretary-General L-1660 Luxembourg -------------------------------- ------------------------------------------ ---------------------- --------------------