Jan 17 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
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
and law firm Lowenstein Sandler LLP, according to the
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
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.