Zodiac Partners II raised its all-cash tender offer for Destination XL Group to $0.84 per share from $0.78, a 7.7% increase, after securing commitments for 35.9% of outstanding shares by the initial June expiration. The special-purpose vehicle extended the offer through early July and committed undisclosed additional equity to fund the higher price.

Destination XL trades Big + Tall menswear through 315 DXL retail stores and integrated e-commerce under ticker DXLG. The company's board issued a brief statement confirming receipt of the revised proposal and noting its fiduciary review continues. At $0.84, Zodiac values the entire equity at roughly $74 million against a retailer carrying $42 million in trailing net debt as of the March quarter. The bid represents approximately 0.18x trailing twelve-month revenue of $412 million, a discount typical of distressed specialty retail where comparable transactions in the segment have cleared between 0.15x and 0.25x revenue over the past eighteen months.

The tender results matter because 35.9% tendered by expiration signals meaningful institutional support without board endorsement. Zodiac launched unsolicited in early May at $0.78 after accumulating a 9.8% stake disclosed in March SEC filings. The raise to $0.84 likely reflects resistance from holders above $0.80 who control the next 15% to 20% needed to approach majority. Specialty apparel has traded sideways since spring as department-store traffic softened and off-price channels took share. Destination XL's same-store sales declined 3.2% in Q1 fiscal 2026, consistent with the broader mid-tier menswear pressure.

Zodiac's incremental equity commitment suggests the vehicle has additional dry powder or arranged mezzanine capacity to push higher if opposition emerges. The extension through July positions the offer to conclude before Destination XL's August earnings, when second-quarter results will either validate the distressed multiple or expose further margin compression. Watch for shareholder letters from top-ten holders who collectively own 48% of the float. Any board rejection or competing proposal would need to surface by mid-July to disrupt Zodiac's timeline. The retailer's two largest institutional holders have not filed updated 13Gs since March, leaving their current stance unclear.

The revised offer now sits 12% above Destination XL's $0.75 close on May 2, the last trading day before Zodiac's initial disclosure. If the tender clears 50.1% by July expiration, expect a short-form merger at the same $0.84 price within sixty days.