Destination XL Group believes it’s better off independent and is asking its shareholders to vote against its previously agreed-upon merger with FullBeauty Brands.

In a statement released Monday, the Canton, Mass.-based men’s big and tall retailer said that as a result of “the challenging consumer environment” and FullBeauty’s “level of indebtedness” since the execution of the initial merger agreement in December 2025, its board of directors has determined that the deal is “no longer advisable.”

The company also cited the “economic dilution that DXL stockholders would experience if the merger were consummated on its current terms.”

The company has not yet set a date for its annual meeting.

Destination XL has been navigating two separate acquisition offers for months. Following the FullBeauty deal at the end of the year, Zodiac Partners II, the West Palm Beach, Fla.-based acquisition entity of Camac Fund, made an offer in mid-May to acquire the retailer for 82 cents a share. That was rejected and Zodiac increased its offer to 84 cents a share in June. That offer, which values the company at $46.4 million, higher than its market capitalization at the time of $37.6 million, was also rejected.

Neither Zodiac nor FullBeauty responded to requests for comment on Monday.