Destination XL to Merge With Oaktree-Backed Fullbeauty Brands — Update
By Josh Beckerman
Big-and-tall retailer Destination XL, which has contended with shifting consumer behavior and tariffs this year, will merge with Oaktree Capital-backed online retailer FullBeauty Brands.
After the all-stock deal is completed, FullBeauty shareholders would own 55% of the merged business, with FullBeauty Chief Executive Jim Fogarty slated to lead the combined company.
Destination XL said Thursday it expects the deal will create a "scaled, category-defining size-inclusive brand portfolio" and anticipates the combined company will be able "to leverage greater scale advantages in product development while maintaining agility to pivot sourcing operations to mitigate tariff exposure."
Destination XL also said third-quarter sales declined 5.2% to $101.9 million, while comparable sales were down 7.4%. Net loss widened to 8 cents a share from 3 cents a share.
The retailer said the deal has the support of investor Fund 1 Investments, which in late 2024 announced its own non-binding buyout proposal worth $3 a share.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
December 11, 2025 18:58 ET (23:58 GMT)
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