Destination XL has received a $17.5 million first-in, last-out (FILO) term loan facility to refinance certain indebtedness and provide additional liquidity for ongoing working capital needs. The retailer is still struggling under the challenges of the past year, with Q4 2020 sales falling 23.7% to $100.1 million.
Destination XL, which operates the DXL Big + Tall and Casual Male XL brands and ecommerce sites including dxl.com, has pivoted its operations to recover from the pandemic. Efforts include adjusting its product assortment, negotiating relief in occupancy costs and restructuring its operating expenses.
“Over the past year, we have repositioned our business to emerge from the pandemic with a lighter cost structure and significantly more operating leverage,” said Peter Stratton, CFO of Destination XL in a statement. “The refinance of the FILO provides an added layer of liquidity that gives us more flexibility to execute against our strategic plan.”
The retailer saw a net loss of $5.1 million in Q4 2020, down from a $2.4 million profit during the same period in 2019. Its annual net loss for 2020 was $64.5 million compared to a $7.8 million loss the prior year. Like many apparel retailers, Destination XL struggled with low traffic in 2020, and the cash infusion may buy it time to mount a comeback as vaccinated shoppers return to stores.
Pathlight Capital served as the FILO Agent on the loan.