Home / Knowledge / News / Apparel/Garments / Clothing chain Dots files for bankruptcy protection
Clothing chain Dots files for bankruptcy protection
23
Jan '14
Dots LLC, the US-based fashion specialty apparel retailer with 420 stores located in 28 states, has filed for bankruptcy protection in order restructure and implement new strategies aimed at re-engaging its core customers.

The Company has USD 100 million in debt outstanding and would close its 36 "chronically underperforming" locations until it finds buyers for the remaining stores. It has secured USD 36 million in debtor-in-possession financing from Salus Capital to keeps remainder of its stores running.

As per WSJ, Dots’ Chief Executive Lisa Rhodes, in a written statement; said, “The filing is the best option available to restructure certain operations, preserve the business as a going concern and maximise the value of the enterprise by pursuing a sale. We are in the process of turning the business around, and the filing is another step toward doing that.”

Dots financial difficulties were further worsened by unfavorable economic circumstances and also owing to several changes it had made in its product marketing and pricing strategies. In 2011, Company sounded the alarm as store traffic had started plummeting and all efforts to win back customers failed.

Besides, stiff competition from bigger rivals like Wal-Mart and Target too hurt had the sales of Dots.

Dots, a brand catering to women who are both fashion- and price- conscious, was founded by Bob Glick in 1987 in a small suburb of Cleveland, Ohio. The company employs about 4,000 workers, including 200 at its headquarters in Glenwillow, Ohio. 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 30th Aug 2016

Maharashtra, Telangana ratify GST Bill; tally 11

The state legislative assemblies of Maharashtra and Telangana today...

Courtesy: Da Milano

Fashion | On 30th Aug 2016

‘Luxury market place expanding at accelerating pace’

The rise of emerging economies and the growing global middle class...

Textiles | On 30th Aug 2016

CAI predicts 2016-17 cotton output at 336 lakh bales

Cotton Association of India (CAI) has predicted that cotton...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
August 2016

F2F Magazine

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search