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 19th Jan 2017

Union Budget: Textile sector expects excise duty revisions

Excise duty on man-made fibres should be reduced to bring it on par...

Union textiles minister Smriti Irani at the inauguration of IIGF in New Delhi with textiles secretary Rashmi Verma and other dignitaries. Courtesy: PIB

Apparel/Garments | On 19th Jan 2017

Ministry to reimburse apparel exporters for state levies

The textile ministry has received a sum of Rs 500 crore from the...

Textiles | On 19th Jan 2017

DOMOTEX 2018 features new exhibition layout

The trade fair for floor coverings DOMOTEX 2018, which begins January ...

Interviews View All

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Robert Brunner
Devereux

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search