On January 24, 2013, Heelys, Inc. merged with and into a wholly-owned subsidiary of Sequential Brands Group, Inc. ("Sequential"), with Heelys being the surviving entity (the "Merger"). As a result of the Merger, Sequential acquired all of the outstanding shares of the common stock of Heelys for approximately $2.25 per share, including all shares owned by Capital Southwest Venture Corporation, a wholly-owned subsidiary of Capital Southwest Corporation ("CSVC"). CSVC owned approximately 33% of the voting shares outstanding of Heelys common stock. The sale of the Heelys common stock generated $20,963,948 in cash proceeds to CSVC. A copy of the press release announcing the merger is attached as Exhibit 99.1 to this Form 8-K.

Exhibit
Number  Description
99.1    Press Release January 30, 2013.