Menswear retailer Destination XL rejects buyout offer — for a second time
Destination XL Group Inc. has once again nixed a deal that would take it private.
The board of the parent company of DXL Big + Tall and Casual Male XL stores recommended that stockholders reject an updated buyout offer of $0.84 per share from Zodiac Partners. The offer, made in June, valued DXL at $46.4 million, higher than its market capitalization at the time of $37.6 million.
Zodiac, the acquisition entity of Camac Fund, made its first offer to acquire the men’s big and tall retailer in May, at $.82 per share. DXL rejected the offer.
“After careful review of Zodiac’s revised proposal, the board unanimously concluded that the modest increase in consideration still undervalues DXL and is not in the best interests of our stockholders,” Lionel Conacher, chairman of the board of DXL, said in a statement regarding the new offer. “The board reiterated its belief that Zodiac’s repeated offers are highly conditional, opportunistic and seemingly timed to deliberately exploit a period of market dislocation. We therefore recommend that stockholders reject the revised offer and do not tender their shares.”
In June, DXL said that its board “reevaluated” its previously announced merger with FullBeauty, and decided that the existing terms of the agreement are not “in the best interests of DXL stockholders.”
The retailer reported a net loss of $5.9 million, or $0.11 per diluted share, for the quarter, as compared to a net loss of $1.9 million, or $(0.04) per diluted share, for the first quarter of fiscal 2025. The adjusted net loss was $0.06 per diluted share as compared to an adjusted net loss of $0.04 for the prior year.
Total sales fell 2.1% to $103.3 million. Comparable sales decreased 3.8%.
As of May 2, the company operated 293 stores, with the majority under the DXL banner.
