Casual Male Retail Group, Inc. Announces Purchase of Dahle's Big and Tall Assets and Entry into Three New States
CANTON, Mass., June 17 /PRNewswire-FirstCall/ -- Casual Male Retail Group, Inc. (Nasdaq: CMRG), retail brand operator of Casual Male XL, Rochester Clothing, B&T Factory Direct, LivingXL and ShoesXL, announced today that Casual Male has entered into an agreement to acquire certain assets of Dahle Management Corporation, operator of 15 big and tall men's apparel stores in nine states.
Under the asset purchase agreement, approximately seven Dahle's Big and Tall men's stores, with annual sales of approximately $5 million, will be converted to the Casual Male XL brand prior to the 2008 Holiday selling season. Five of the Dahle's stores are located in either the Salt Lake City, UT area, Billings, MT, or Boise, ID, all new markets for CMRG and bringing Casual Male's presence to 47 states. The additional two Dahle's stores are located in existing Casual Male XL markets in the Phoenix and Las Vegas areas, providing an opportunity to expand in these growing markets. CMRG will retain Dahle's employees in these stores. Dahle's will retain ownership of the real estate and will be CMRG's landlord in these stores. In addition, CMRG will acquire Dahle's customer list from its internet and catalog business which generated approximately $500,000 in revenue last year and will no longer be operated by Dahle's.
The balance of Dahle's men's operation, which consists of approximately eight other store locations, all of which compete directly with CMRG, will be liquidated by Dahle Management and closed by the end of January 2009. The acquisition is not considered to be a material transaction to CMRG and is not expected to impact CMRG earnings in 2008. The transaction is expected to be accretive to CMRG earnings in fiscal year 2009.
David Levin, CEO and President of CMRG, commented, "Over the years, the Dahle family and its employees have established an outstanding reputation in its markets and we look forward to transitioning its customers to the Casual Male XL brand. The addition of these stores in the western part of the country makes an excellent addition to our real estate portfolio."
Rob Dahle, President of Dahle's, stated, "We are delighted to have made this arrangement with Casual Male as they have become the preeminent place for big and tall men to shop for their wardrobe needs. The Dahle family would like to thank our long time employees and customers for their support over the last 49 years."
Casual Male Retail Group, Inc., the largest retailer of big and tall men's apparel with retail operations throughout the United States, Canada and London, England, operates 466 Casual Male XL retail and outlet stores, 27 Rochester Clothing stores, and direct to consumer businesses which include several catalogs and e-commerce sites. The Company is headquartered in Canton, Massachusetts, and its common stock is listed on the NASDAQ Global Market under the symbol "CMRG."
Certain information contained in this press release constitutes forward-looking statements under the federal securities laws, including, without limitation, statement regarding the expected impact of the Dahle's transaction. The discussion of forward-looking information requires management of the Company to make certain estimates and assumptions regarding the Company's strategic direction and the effect of such plans on the Company's financial results. The Company's actual results and the implementation of its plans and operations may differ materially from forward-looking statements made by the Company. The Company encourages readers of forward-looking information concerning the Company to refer to its prior filings with the Securities and Exchange Commission, including without limitation, its Annual Report on Form 10-K filed on March 26, 2008, that set forth certain risks and uncertainties that may have an impact on future results and direction of the Company.
Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The Company undertakes no obligation and expressly disclaims any duty to update such statements.
SOURCE Casual Male Retail Group, Inc.
CONTACT: Jeff Unger, Vice President of Investor Relations of Casual Male Retail Group, Inc.
Jessica Perry of Weber Shandwick