Destination XL Group, the American apparel retailer, has received a new US $ 17.5 million term loan facility in order to refinance its existing debt.
In a statement released to media, the Group said that it will be utilising the loan amount for working capital needs.
The loan, which matures in 2026, comes at a time when S&P Global Market Intelligence had rated Destination XL Group as one of the most vulnerable retailers with a default probability of 15.4 per cent.
Also Read: J. Jill and Destination XL most vulnerable retailers, says S&P Global
Reportedly, the default probability is expected to rise to 24.4 per cent over the course of next two years.
As was the case with many apparel retailers, Destination XL Group too struggled to survive in 2020 and even by the fourth quarter, the scenario wasn’t much different – with 23.7 per cent drop in sales.
The Group also recorded a net loss of worrying US $ 64.5 million over the year, which was 8 times more than the loss the retailer had incurred in 2019.
Meanwhile, there are reports that Pathlight, which is the Group’s agent, will try to keep Destination XL out of bankruptcy court for sometime now.
The focus for the Group will now be on online growth, possible store reductions and producing more casual wear.
Bharat Tex Special Report 2026 
