Form 4: Fund 1 Investments, LLC Increases Stake in 1-800 FLOWERS.COM Inc.

Fund 1 Investments, LLC, along with related entities, reports increased holdings in 1-800 FLOWERS.COM Inc. through open market purchases and cash-settled total return swaps.

Summary

• Fund 1 Investments, LLC, PLP Funds Master Fund LP, and Pleasant Lake Partners LLC (collectively, the Reporting Persons) have filed a Form 4 detailing changes in their beneficial ownership of 1-800 FLOWERS.COM Inc. (FLWS) stock.
• The Reporting Persons acquired shares of Class A Common Stock through open market purchases on April 10, 11, and 14, 2025.
• These purchases totaled 40,000 shares at $5.3177, 47,598 shares at $5.2834, and 40,000 shares at $5.2734, respectively.
• Following these transactions, the Reporting Persons beneficially own 8,360,567 shares of Class A Common Stock.
• The Reporting Persons also have economic exposure to 3,831,566 notional shares through cash-settled total return swaps with an unaffiliated third-party financial institution.
• The Swap Agreements' expiration date will be automatically extended for successive 12 month periods unless either party provides written notice.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the increased investment by Fund 1 Investments, LLC, suggesting confidence in the company's prospects. However, the use of swaps introduces some complexity and potential risk.

Positives

• Increased investment by Fund 1 Investments, LLC and related entities could signal confidence in the future performance of 1-800 FLOWERS.COM Inc.

Risks

• The use of cash-settled total return swaps introduces a layer of complexity and potential risk, as the Reporting Persons do not directly own the underlying shares.
• Changes in the terms or termination of the swap agreements could impact the Reporting Persons' economic exposure to FLWS stock.

Future Outlook

The document does not contain specific forward-looking statements from the company itself, but the continued investment by Fund 1 Investments, LLC suggests a potentially positive outlook.

Industry Context

Investment firms frequently use derivatives like cash-settled swaps to gain economic exposure to companies without direct ownership, which can be a common strategy in the financial industry.

Comparison to Industry Standards

• Hedge funds and investment firms often use total return swaps to manage risk and gain exposure to assets without directly owning them, a practice seen across various industries.
• The level of detail provided in the Form 4 is standard for SEC filings related to changes in beneficial ownership, aligning with regulatory requirements.

Stakeholder Impact

• The increased investment could be viewed positively by shareholders, potentially leading to increased confidence in the company.
• The transactions do not appear to have a direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

1-800 FLOWERS.COM, FLWS, Fund 1 Investments, PLP Funds Master Fund, Pleasant Lake Partners, Beneficial Ownership, Form 4, Cash-Settled Total Return Swap, Stock Purchase