SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------------------
SCHEDULE 13D
(Amendment No. 9)
Under the Securities Exchange Act of 1934
DISCOVERY ZONE, INC.
(Name of Issuer)
Common Stock, Par Value $.01 Per Share
(Title of Class of Securities)
25468B 10 7
(CUSIP Number)
Philippe P. Dauman, Esq.
Viacom Inc.
1515 Broadway
New York, NY 10036
Telephone: (212) 258-6139
(Name, Address and Telephone Number of
Person Authorized to Receive Notices and
Communications)
March 19, 1996
(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 Rule 13d-1(b)(3) or (4), check the following box \ \.
Check the following box if a fee is being paid with this statement \ \.
Page 1 of 16
CUSIP No. 25468B 10 7
(1) Name of Reporting Person
S.S. or I.R.S. Identification No. of Above Person
BLOCKBUSTER DISCOVERY INVESTMENT, INC.
- - -----------------------------------------------------------------------------
I.R.S. Identification No. 65-0403677
- - -----------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of Group (See Instructions)
\ \ (a)----------------------------------------------------------------
\ \ (b)----------------------------------------------------------------
- - -----------------------------------------------------------------------------
(3) SEC Use Only---------------------------------------------------------
- - -----------------------------------------------------------------------------
(4) Sources of Funds (See Instructions)----------------------------------
- - -----------------------------------------------------------------------------
(5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e).--------------------------------------------------------
(6) Citizenship or Place of Organization Delaware
-------------------------------
- - ----------
Number of (7) Sole Voting Power-------------------------------------
Shares
Beneficially (8) Shared Voting Power 28,044,001
Owned by --------------------------------
Each (9) Sole Dispositive Power--------------------------------
Reporting
Person (10) Shared Dispositive Power 28,044,001
With ---------------------------
- - ----------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
28,044,001
- - -----------------------------------------------------------------------------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions)----------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
49.99% (including currently exercisable option)
- - -----------------------------------------------------------------------------
(14) Type of Reporting Person (See Instructions) CO
-------------------------
Page 2 of 16
CUSIP No. 25468B 10 7
(1) Name of Reporting Person
S.S. or I.R.S. Identification No. of Above Person
VIACOM INC.
- - -----------------------------------------------------------------------------
I.R.S. Identification No. 04-2949533
- - -----------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of Group (See Instructions)
\ \ (a)----------------------------------------------------------------
- - -----------------------------------------------------------------------------
\ \ (b)----------------------------------------------------------------
- - -----------------------------------------------------------------------------
(3) SEC Use Only---------------------------------------------------------
- - -----------------------------------------------------------------------------
(4) Sources of Funds (See Instructions)----------------------------------
- - -----------------------------------------------------------------------------
(5) Check if Disclosure of Legal Proceedings is Required Pursuant
to Items 2(d) or 2(e).-----------------------------------------------
(6) Citizenship or Place of Organization Delaware
--------------------------------
- - ----------
Number of (7) Sole Voting Power--------------------------------------
Shares
Beneficially (8) Shared Voting Power 28,044,001
Owned by ----------------------------------
Each (9) Sole Dispositive Power---------------------------------
Reporting
Person (10) Shared Dispositive Power 28,044,001
With ----------------------------
- - ----------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person 28,044,001
-----------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions)-----------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
49.99% (including currently exercisable option)
- - -----------------------------------------------------------------------------
(14) Type of Reporting Person (See Instructions) CO
----------------------------
Page 3 of 16
CUSIP No. 25468B 10 7
(1) Name of Reporting Person
S.S. or I.R.S. Identification No. of Above Person
SUMNER M. REDSTONE
- - -----------------------------------------------------------------------------
S.S. No.
- - -----------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of Group (See Instructions)
\ \ (a)----------------------------------------------------------------
\ \ (b)----------------------------------------------------------------
- - -----------------------------------------------------------------------------
(3) SEC Use Only---------------------------------------------------------
- - -----------------------------------------------------------------------------
(4) Sources of Funds (See Instructions)----------------------------------
- - -----------------------------------------------------------------------------
(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
--------------------------------
- - ----------
Number of (7) Sole Voting Power-----------------------------------------
Shares
Beneficially (8) Shared Voting Power 28,044,001
Owned by -------------------------------------
Each (9) Sole Dispositive Power------------------------------------
Reporting
Person (10) Shared Dispositive Power 28,044,001
With --------------------------------
- - ----------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person 28,044,001
-----------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
49.99% (including currently exercisable option)
- - -----------------------------------------------------------------------------
(14) Type of Reporting Person (See Instructions) IN
---------------------------
Page 4 of 16
The Schedule 13D, previously filed by the undersigned with respect to the
Common Stock, par value $.01 per share, of Discovery Zone, Inc., is hereby
amended as follows:
Item 2. Identity and Background
-----------------------
Item 2 is amended and supplemented to report the current list of officers
and directors of Viacom Inc. ("Viacom") on Schedule I hereto.
Item 4. Purpose of the Transaction
--------------------------
Item 4 is amended and supplemented as follows:
On March 19, 1996, Steven R. Berrard resigned as a Director of Viacom and
the Issuer. On March 24, 1996, Sumner M. Redstone and Philippe P. Dauman, each
of whom are directors of Viacom, resigned as Directors of the Issuer and Adam
Phillips, Senior Vice President, General Counsel of Viacom's Blockbuster
Entertainment Group, was elected as a Director of the Issuer. On March 25, 1996,
the Issuer filed a voluntary petition with the U.S. Bankruptcy Court for the
District of Delaware for protection from its creditors under Chapter 11 of the
U.S. Bankruptcy Court.
Item 7. Material to be Filed as Exhibits
--------------------------------
99.1 Press Release issued by Discovery Zone,
Inc. on March 19, 1995.
99.2 Press Release issued by Discovery Zone,
Inc. on March 25, 1996.
Page 5 of 16
Signature
- - ----------
After reasonable inquiry and to the best of our knowledge and belief, we
certify that the information set forth in this Statement is true, complete and
correct.
March 27, 1996 BLOCKBUSTER DISCOVERY
INVESTMENT, INC.
By /s/ Michael D. Fricklas
----------------------------------
Name: Michael D. Fricklas
Title: Senior Vice President
Page 6 of 16
Signature
- - ---------
After reasonable inquiry and to the best of our knowledge and belief, we
certify that the information set forth in this Statement is true, complete and
correct.
March 27, 1996 VIACOM INC.
By /s/ Michael D. Fricklas
------------------------------
Name: Michael D. Fricklas
Title: Senior Vice President,
Deputy General Counsel
Page 7 of 16
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.
March 27, 1996 *
--------------------------------------
Sumner M. Redstone, Individually
*By /s/ Philippe P. Dauman
---------------------------
Philippe P. Dauman
Attorney-in-Fact under the
Limited Power of Attorney filed
as Exhibit 99.2 to the Statement,
Amendment No. 4.
Page 8 of 16
Exhibit Index
99.1 Press Release issued by Discovery Zone,
Inc. on March 19, 1995.
99.2 Press Release issued by Discovery Zone,
Inc. on March 25, 1996.
Page 9 of 16
Schedule I
Executive Officers
Name and Address
of Corporation or
Business or Principal Occupation Other Organization in
Name Residence Address or Employment Which Employed
- - ---- ----------------- -------------------- ------------------------
Sumner M. Redstone* Viacom Inc. Chairman of the Board National Amusements, Inc.
1515 Broadway and Chief Executive 200 Elm Street
New York, NY 10036 Officer of Viacom; Dedham, MA 02026
Chairman of the Board
and President, Chief
Executive Officer of
National Amusements, Inc.
Vaughn A. Clarke Viacom Inc. Sr. VP, Treasurer of Viacom International Inc.
1515 Broadway Viacom 1515 Broadway
New York, NY l0016 New York, NY 10036
Philippe P. Dauman* Viacom Inc. Deputy Chairman, Viacom International Inc.
1515 Broadway Executive VP, General 1515 Broadway
New York, NY l0016 Counsel, Chief New York, NY 10036
Administrative Officer
and Secretary of Viacom
Thomas E. Dooley* Viacom Inc. Deputy Chairman, Viacom International Inc.
1515 Broadway Executive VP, Finance, 1515 Broadway
New York, NY l0016 Corporate Development New York, NY 10036
and Communications of
Viacom
- - ---------------
*Also a Director
Page 10 of 16
Schedule I
(Continued)
Name and Address
of Corporation or
Business or Principal Occupation Other Organization in
Name Residence Address or Employment Which Employed
- - ---- ----------------- -------------------- ------------------------
Carl D. Folta Viacom Inc. Sr. VP, Corporate Viacom International Inc.
1515 Broadway Relations of Viacom 1515 Broadway
New York, NY 10036 New York, NY 10036
Michael D. Fricklas Viacom Inc. Sr. VP, Deputy General Viacom International Inc.
1515 Broadway Counsel and Assistant 1515 Broadway
New York, NY 10036 Secretary of Viacom New York, NY 10036
Susan C. Gordon Viacom Inc. Vice President, Viacom International Inc.
1515 Broadway Controller, Chief 1515 Broadway
New York, NY 10036 Accounting Officer New York, NY 10036
of Viacom
Rudolph L. Hertlein Viacom Inc. Sr. VP of Viacom Viacom International Inc.
1515 Broadway 1515 Broadway
New York, NY 10036 New York, NY 10036
Edward D. Horowitz Viacom Inc. Sr. VP, Technology of Viacom International Inc.
1515 Broadway Viacom; Chairman, Chief 1515 Broadway
New York, NY 10036 Executive Officer of New York, NY 10036
New Media and Interactive
Television
Page 11 of 16
Schedule I
(Continued)
Name and Address
of Corporation or
Business or Principal Occupation Other Organization in
Name Residence Address or Employment Which Employed
- - ---- ----------------- -------------------- ------------------------
William A. Roskin Viacom Inc. Sr. VP, Human Viacom International Inc.
1515 Broadway Resources and 1515 Broadway
New York, NY 10036 Administration of Viacom New York, NY l0036
George S. Smith, Jr. Viacom Inc. Sr. VP, Chief Viacom International Inc.
1515 Broadway Financial Officer of 1515 Broadway
New York, NY 10036 Viacom New York, NY l0036
Mark M. Weinstein Viacom Inc. Sr. VP, Government Viacom International Inc.
1515 Broadway Affairs of Viacom 1515 Broadway
New York, NY 10036 New York, NY l0036
Directors
George S. Abrams Winer & Abrams Attorney Winer & Abrams
One Court Street One Court Street
Boston, MA 02108 Boston, MA 02108
Page 12 of 16
Schedule I
(Continued)
Name and Address
of Corporation or
Business or Principal Occupation Other Organization in
Name Residence Address or Employment Which Employed
- - ---- ----------------- -------------------- ------------------------
George D. Johnson, Jr. Extended Stay America, Inc. President -- Chief Extended Stay America, Inc.
500 East Broward Boulevard Executive Officer, 500 East Broward Boulevard
Suite 950 Extended Stay America, Inc. Suite 950
Ft. Lauderdale, FL 33394 Ft. Lauderdale, FL 33394
Ken Miller C.S. First Boston Vice Chairman of C.S. First Boston
Park Avenue Plaza C.S. First Boston Park Avenue Plaza
55 East 52nd Street 55 East 52nd Street
New York, NY 10055 New York, NY 10055
Brent D. Redstone 31270 Eagle Crest Lane Self-Employed National Amusements, Inc.
Evergreen, CO 80439 200 Elm Street
(Residence) Dedham, MA 02026
Shari Redstone National Amusements, Inc. Executive Vice National Amusements, Inc.
200 Elm Street President of 200 Elm Street
Dedham, MA 02026 National Amusements, Inc. Dedham, MA 02026
Frederic V. Salerno NYNEX Corporation Vice Chairman -- NYNEX Corporation
335 Madison Avenue Finance and Business 335 Madison Avenue
New York, NY 10033 Development of NYNEX New York, NY 10033
William Schwartz Yeshiva University VP for Academic Yeshiva University
2495 Amsterdam Avenue Affairs (chief 2495 Amsterdam Avenue
New York, NY 10033 academic officer) New York, NY 10033
of Yeshiva University
Ivan Seidenberg NYNEX Corporation Chairman of the Board NYNEX Corporation
335 Madison Avenue and Chief Executive 335 Madison Avenue
New York, NY 10017 Officer of NYNEX New York, NY 10017
Page 13 of 16
Exhibit 99.1
FOR IMMEDIATE RELEASE Contact: Robert Mead (212) 484-6701
DISCOVERY ZONE ANNOUNCES RESIGNATION
FT. LAUDERDALE, FLORIDA, MARCH 19,1996 --- Discovery Zone, Inc. announced
today that, in connection with the previously announced resignation of Steven R.
Berrard as the Chief Executive Officer of the Blockbuster Entertainment Group
and a director of Viacom, Inc., Mr. Berrard has resigned as CEO and a director
of Discovery Zone.
The Company said that Donna Moore, who is currently President and Chief
Operating Officer of Discovery Zone, would continue to oversee the Company's
day-to-day operations.
Discovery Zone is the leading operator of children's indoor entertainment
and fitness facilities.
###
Page 14 of 16
Exhibit 99.2
FOR IMMEDIATE RELEASE
For: Discovery Zone, Inc.
Contact: Robert Mead 305/627-2643
212/484-6701
DISCOVERY ZONE SEEKS TO REORGANIZE UNDER CHAPTER 11
---------------------
Company Will Close Unprofitable Stores
to Focus on Profitable Core of Operations
--------------------
Donna Moore Named CEO
FT. LAUDERDALE, FL. MARCH 25, 1996 -- Discovery Zone, Inc. announced today
that it has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy
Code in the U.S. Bankruptcy Court for the District of Delaware. The Company said
that it elected to seek court protection in order to facilitate the
implementation of its operational turnaround and a financial restructuring.
Discovery Zone said that it will operate in the normal course of business
during the reorganization proceeding and that it has received a commitment for
$15 million in debtor-in-possession ("DIP") financing.
"We believe reorganizing under Chapter 11 is in the best interests of the
Company," said Donna Moore, Chief Executive Officer of Discovery Zone. "A
successful Chapter 11 reorganization will address the problems caused by the
Company's rapid expansion and put Discovery Zone on stronger financial footing."
Moore continued: "Discovery Zone is a viable concept, and we have an
opportunity to revitalize our operations with new marketing programs and
entertainment concepts that will improve the Discovery Zone experience for kids
and their parents. "
(more)
Page 15 of 12
Discovery Zone said that it would move immediately to close unprofitable
store locations in order to improve its operating cost structure and allow the
Company to focus on core markets and locations. Discovery Zone said that it
would also continue to seek to reduce operating costs in remaining locations,
primarily through the renegotiation of unfavorable leases to reduce occupancy
costs.
Separately, Discovery Zone announced that Donna Moore has been named
President and Chief Executive Officer and a director of the Company.
Moore had served as President and Chief Operating Officer of Discovery Zone
since joining the Company in July 1995. Moore, a 35-year veteran of consumer
retailing, has held various management positions in retailing with major
sumer-oriented companies, including President of the North American division
of Laura Ashley, Inc., where she successfully oversaw a major reorganization.
From 1987 to 1992, Moore was Senior Vice President -Stores for The Walt Disney
Co. and spearheaded the dramatic growth of The Disney Stores from a 2-store test
concept to an international entertainment retailer with over 150 locations.
Before joining The Walt Disney Co., Moore was Senior Vice President - Stores of
Williams-Sonoma, where she oversaw the growth of that company from 17 stores to
more than 80 locations. Prior to that, Moore was Vice President of Retailing at
Marriott and developed that company's retail concept from 14 in-hotel gift shops
to 150 resort and specialty shops. Moore was most recently with Motherhood
Maternity, where she held the positions of President and Chief Executive Officer
since 1993.
Additionally, Discovery Zone announced that Sumner Redstone, Chairman and
CEO of Viacom Inc., and Philippe Daumann, Deputy Chairman and Executive Vice
President of Viacom Inc. have resigned their positions as directors of Discovery
Zone. Discovery Zone said that Adam Phillips, Senior Vice President and General
Counsel of Blockbuster Entertainment Group was appointed a director of the
Company. J. Brian McGrath and John L. Mouthing continue to serve as directors of
Discovery Zone.
Viacom has a substantial interest in Discovery Zone through its acquisition
in 1994 of Blockbuster Entertainment Group.
Discovery Zone is the leading operator of children's indoor entertainment
and fitness facilities.
###
Page 16 of 16
