Discount retailer Dots to file for bankruptcy: WSJ
(Reuters) - Discount retailer Dots LLC is preparing for a possible bankruptcy-protection filing by Sunday, as it struggles to stay afloat amid competition from online rivals, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Limited-time or "flash" sales on popular websites such as Rue La La and Gilt have eaten into Dots's revenue, which has declined in recent periods, the Journal report said, citing the people.
The retailer, which caters to women aged between 25 and 35 years old and has more than 400 stores across 28 states, has enlisted restructuring advisers at PricewaterhouseCoopers PWC.UL and law firm Lowenstein Sandler LLP, according to the WSJ.
Glenwillow, Ohio-based Dots is also in talks with asset management firm Salus Capital Partners for debtor-in-possession financing, sources told the business daily. According to the report, Salus provided Dots with about $50 million in financing about six months ago.
Dots's bankruptcy filing would underscore the retail industry's breakneck move from offline to online, which has significantly hurt brick-and-mortar businesses.
Bronx, New York-based Loehmann's, the 92-year-old discount clothing chain, filed for bankruptcy protection for a third time last December.
Dots, owned by Irving Place Capital, a middle-market private equity firm, was not immediately available for comment outside of regular U.S. business hours when reached by Reuters.
(Reporting by Natalie Grover and Zeba Siddiqui in Bangalore)
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