By Nicholas G. Miller
Destination XL Group said it no longer believes the terms of its merger with Oaktree Capital-backed FullBeauty Brands is in the best interests of shareholders, citing an increasingly challenging consumer environment and FullBeauty's debt.
In December, the two companies agreed to an all-stock merger in which FullBeauty shareholders would own 55% of the combined business.
On Wednesday, Destination XL said its board still believes in the industrial logic of the combination but that following a reevaluation of the merger, it believes the existing terms are not in the best interests of shareholders.
Last month, Zodiac Partners II, an entity of Camac Fund, offered to buy Destination XL for $46 million, or 82 cents a share, but Destination XL's board recommended that shareholders reject the offer.
On Wednesday, Destination XL said its fiscal first-quarter comparable sales fell 3.8% from the previous-year quarter.
The retailer of men's big-and-tall apparel reported a quarterly loss of $5.9 million, or 11 cents a share, compared with a loss of $1.9 million, or 4 cents a share, the year prior.
Write to Nicholas G. Miller at nicholas.miller@wsj.com.
(END) Dow Jones Newswires
June 03, 2026 07:45 ET (11:45 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.