Casual Male Retail Group Inc, retail brand operator of Casual Male XL, Rochester Clothing, B&T Factory Direct, LivingXL and ShoesXL, announced 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.