Destination XL board urges shareholders to reject Zodiac Partners tender offer

US big and tall menswear retailer Destination XL Group has unanimously recommended that its shareholders reject an unsolicited tender offer from Zodiac Partners II.

The board of directors for the US-based firm, which operates under the abbreviation DXL, conducted a thorough review alongside external legal and financial advisors before issuing the guidance. The tender offer, launched by Zodiac Partners II on May 12, 2026, proposed a price of 0.82 dollars per share.

According to the leadership team, the offer fails to reflect the underlying value of the integrated commerce retailer.

Board labels offer highly conditional and opportunistic

Lionel Conacher, chairman of the board of DXL, stated that the governing body remains committed to maximizing shareholder value and pursuing actions in the best interest of the business and its investors.

“In that light, the board conducted a thorough review of Zodiac's tender offer and determined that it does not reflect the company’s underlying value,” Conacher said. “The offer is also highly conditional and opportunistic, seemingly timed to deliberately exploit a period of market dislocation.”

First quarter financial results rescheduled for June 3

In a related corporate update, the menswear retailer confirmed it will delay the release of its financial results for the first quarter of fiscal 2026.

Management and the board required significant time and resources to evaluate the unsolicited tender offer, which necessitated an extension to complete the quarterly report. The first quarter results, originally scheduled for an earlier date, are now set to be released before the market opens on Wednesday, June 3, 2026.

The company operates as a major omnichannel specialist in the US clothing market, focusing specifically on the big and tall category for men.