By Josh Beckerman
Fund 1 Investments, a shareholder of big and tall men's apparel retailer Destination XL Group, announced a non-binding buyout proposal worth $3 a share.
The activist investor said it believes the company, which runs the DXL Big + Tall and Casual Male XL chains, would fare better outside of the public markets.
Destination XL said Monday that it would carefully review and evaluate the proposal and other strategic alternatives.
Fund 1 reported a 10.6% stake in a securities filing. It filled a Form 13G in February, and in June switched to the 13D filing required for activist investors. The firm's other investments have included Citi Trends and BJ's Restaurants.
"While we would like to have the flexibility to finance this acquisition with a combination of equity and debt, we have committed and have available equity capital to fully fund our Proposal and confirm that the definitive transaction agreements would not include a financing condition," the firm said.
Destination XL shares were up 21%, to $2.63, in midday Monday trading.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
December 23, 2024 14:59 ET (19:59 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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