Fund 1 Investments Files 13D for Destination XL Group

TL;DR

**Fund 1 Investments just updated their stake in Destination XL Group (DXLG). Keep an eye on this one.**

AI Summary

Fund 1 Investments, LLC has filed a Schedule 13D on June 26, 2024, regarding their holdings in Destination XL Group, Inc. The filing indicates a change in beneficial ownership, though specific dollar amounts and the exact percentage of ownership are not detailed in this excerpt. The filing is an amendment to a previous filing, suggesting ongoing activity or changes in the fund's stake.

Why It Matters

This filing signals a significant investor's updated stake in Destination XL Group, Inc., which could influence the company's stock performance and strategic decisions.

Risk Assessment

Risk Level: medium — Schedule 13D filings often precede significant corporate actions or shifts in control, introducing potential volatility.

Key Players & Entities

• Fund 1 Investments, LLC (company) — Filing entity
• Destination XL Group, Inc. (company) — Subject company
• Kenneth Mantel, Esq. (person) — Legal representative
• Olshan Frome Wolosky LLP (company) — Legal firm

FAQ

Key Financial Figures

• $0.01 — ame of Issuer) Common Stock, par value $0.01 per share (Title of Class of Securiti
• $25,022,825 — y the Reporting Person is approximately $25,022,825, including brokerage commissions. Item

Filing Documents

• sc13d13866004_06272024.htm (SC 13D) — 58KB
• 0000921895-24-001466.txt ( ) — 60KB

Security and Issuer

Item 1. Security and Issuer . This statement relates to the Common Stock, par value $0.01 per share (the “Shares”), of Destination XL Group, Inc., a Delaware corporation (the “Issuer”). The address of the principal executive offices of the Issuer is 555 Turnpike Street, Canton, Massachusetts 02021.

Identity and Background

Item 2. Identity and Background . (a) This Schedule 13D is filed by Fund 1 Investments, LLC (“Fund 1 Investments” or the “Reporting Person”), with respect to the Shares beneficially owned by it. The Shares reported herein are held for the benefit of private investment vehicles, including Pleasant Lake Onshore Feeder Fund, LP (“Pleasant Lake Feeder Fund” and collectively with the private investment vehicles, the “Funds”), for which Pleasant Lake Partners LLC (“PLP”) serves as investment adviser. Fund 1 Investments serves as managing member of PLP, and Jonathan Lennon serves as managing member of Fund 1 Investments. (b) The principal business address of Fund 1 Investments is 100 Carr 115, Unit 1900, Rincon, Puerto Rico 00677. (c) The principal business of Fund 1 Investments is serving as managing member of PLP. (d) The Reporting Person has not, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). (e) The Reporting Person has not, during the last five years, been party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding 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) Fund 1 Investments is organized under the laws of the State of Delaware.

Source and Amount of Funds or Other Consideration

Item 3. Source and Amount of Funds or Other Consideration . The Shares beneficially owned by the Reporting Person were purchased with working capital of the Funds (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business) in open market purchases. The aggregate purchase price of the 5,732,261 Shares beneficially owned by the Reporting Person is approximately $25,022,825, including brokerage commissions.

Purpose of Transaction

Item 4. Purpose of Transaction . The Reporting Person purchased the Shares based on the Reporting Person’s belief that the Shares, when purchased, were undervalued and represented an attractive investment opportunity. Depending upon overall market conditions, other investment opportunities available to the Reporting Person, and the availability of Shares at prices that would make the purchase or sale of Shares desirable, the Reporting Person may endeavor to increase or decrease its position in the Issuer through, among other things, the purchase or sale of Shares on the open market or in private transactions or otherwise, on such terms and at such times as the Reporting Person may deem advisable. 3 CUSIP No. 25065K104 The Reporting Person intends to engage in discussions with the Issuer’s board of directors (the “Board”) and management team regarding operational and strategic opportunities for the Issuer to enhance stockholder value. In accordance with the terms of the Issuer’s Restated Certificate of Incorporation (the “Charter”), the Board has authorized the Reporting Person and its affiliates to acquire Percentage Stock Ownership in the Corporation Securities of up to 9.9% of the outstanding Corporation Securities (each such term as defined in the Charter), subject to certain terms and conditions. The Reporting Person does not have any present plan or proposal which would relate to or result in any of the matters set forth in subparagraphs (a) - (j) of Item 4 of Schedule 13D except as set forth herein or such as would occur upon or in connection with completion of, or following, any of the actions discussed herein. The Reporting Person intends to review its investment in the Issuer on a continuing basis. Depending on various factors including, without limitation, the Issuer’s financial position, results and strategic direction, actions taken by the Issuer’s management team and the Board, price levels o

Interest in Securities of the Issuer

Item 5. Interest in Securities of the Issuer . The aggregate percentage of Shares reported beneficially owned by the Reporting Person is based upon 58,228,053 Shares outstanding as of May 17, 2024, which is the total number of Shares outstanding as reported in the Issuer’s Annual Report on Form 10-K/A filed with the Securities and Exchange Commission on June 3, 2024. (a) As of the date hereof, Fund 1 Investments beneficially owned 5,732,261 Shares. Percentage: Approximately 9.8% (b) 1. Sole power to vote or direct vote: 5,732,261 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 5,732,261 4. Shared power to dispose or direct the disposition: 0 (c) The transactions in the Shares by Fund 1 Investments on behalf of the Funds during the past sixty days are set forth in Schedule A and are incorporated herein by reference. (d) The Funds have the right to receive, or the power to direct the receipt of dividends from, or the proceeds from the sale of, the reported securities. 4 CUSIP No. 25065K104 (e) Not applicable.

Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer

Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer . The Reporting Person has entered into certain cash-settled swap agreements with an unaffiliated third-party financial institution (the “Cash-Settled Swaps”). Collectively, the Cash-Settled Swaps held by the Reporting Person represent economic exposure to an aggregate of 4,444,011 notional Shares, representing approximately 7.6% of the outstanding Shares. The Cash-Settled Swaps provide the Reporting person with economic results that are comparable to the economic results of ownership, but do not provide it with the power to vote or direct the voting, or dispose of or direct the disposition, of the Shares that are subject to the Cash-Settled Swaps. Other than as described herein, there are no contracts, arrangements, understandings or relationships between the Reporting Person and any other person, with respect to the securities of the Issuer.

Material to be Filed as Exhibits

Item 7. Material to be Filed as Exhibits . Not applicable. 5 CUSIP No. 25065K104

SIGNATURES

SIGNATURES After reasonable inquiry and to the best of my knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: June 26, 2024 FUND 1 INVESTMENTS, LLC By: /s/ Benjamin C. Cable Name: Benjamin C. Cable Title: Chief Operating Officer 6 CUSIP No. 25065K104 SCHEDULE A Transactions in the Securities of the Issuer During the Past Sixty Days Nature of the Transaction Amount of Securities Purchased/(Sold) Price ($) Date of Purchase/Sale FUND 1 INVESTMENTS, LLC (On Behalf of the Funds) Sale of Common Stock (225,000) 3.1502 05/03/2024 Sale of Common Stock (2,687) 3.7524 05/28/2024 Purchase of Common Stock 8,458 3.2796 05/30/2024 Sale of Common Stock (33,800) 3.2812 05/30/2024 Purchase of Common Stock 2,000 3.3009 05/31/2024 Purchase of Common Stock 5,000 3.5790 06/03/2024 Purchase of Common Stock 3,000 3.5862 06/10/2024 Purchase of Common Stock 2,500 3.6047 06/11/2024 Purchase of Common Stock 5,000 3.5770 06/12/2024 Purchase of Common Stock 9,000 3.5606 06/13/2024 Purchase of Common Stock 2,000 3.5424 06/14/2024 Purchase of Common Stock 2,500 3.4987 06/17/2024

View Full Filing

View this SC 13D filing on SEC EDGAR