Destination XL Group’s board of directors has again recommended shareholders reject an updated acquisition offer from Zodiac Partners II.
The apparel company’s board first recommended the rejection of a Zodiac Partners offer in May priced at 82 cents per share, which valued the company at about $46 million. The renewed rejection announced Wednesday is based on an updated offer priced at 84 cents per share.
“The DXL Board of Directors remains committed to maximizing stockholder value and acting in the best interests of all DXL stakeholders,” DXL Chairman of the Board Lionel Conacher said in a statement. “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. 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.”
The updated offer was received on June 23 and expires on July 24. A formal securities filing from DXL Wednesday said the board believes the offer is designed to acquire DXL at a depressed price.
The plus-size fashion brand in June announced it’s reconsidering a planned merger with FullBeauty, with DXL’s board noting “the increasingly challenging consumer environment since the execution of the merger agreement in December 2025 and FullBeauty’s indebtedness.”
