RLR Capital Expands Effort at 1-800 Flowers.Com

The flowers may soon bloom at 1-800 Flowers.Com, at least that’s what it looks like to an activist investor that hiked his stake in the company on Friday.

Robert L. Rosen and RLR Capital Partners LP raised their stake in the Carle Place, NY-based fresh-cut flowers retailer to 6.3% from 5.1%. The activist first reported an original Schedule 13D Securities and Exchange Commission filing on June 27. In it, RLR Capital Partners said the flower retailer’s shares were “substantially” undervalued and that the hedge fund’s managers “have had, and expect to continue to have, discussions” with the company’s management about business prospects. In a letter to 1-800 Flowers.Com executives on June 27, Rosen expressed support for the company’s strategy but also indicated that the company should “pursue” opportunities to “enhance” shareholder value.

“As your free cash flow builds over the coming months and years, you will have capital structure and allocation opportunities. We remain confident that you will continue to pursue those opportunities which will most greatly enhance shareholder value,” he wrote.

1-800 Flowers.Com has a $454 million stock market capitalization. -- Ron Orol