Retailer Files For Ch. 11, Closes One Of Eight MN Stores
A national women's apparel retail chain recently filed for Chapter 11 bankruptcy protection, and it is closing one of its eight Minnesota locations.
Dots, LLC—which is based in Glenwillow, Ohio—closed a total of 30 locations nationwide. The discount retailer of women's clothing and accessories operates approximately 400 stores in 28 states primarily in the Midwest, East, and Southeast United States. The company's Maplewood store was closed as part of the downsizing. The company employs more than 4,000, according to its website. Dots also said that it will continue to evaluate whether to eliminate additional lease contracts and other expenses during the next few months.
“The filing is the best option available to restructure certain operations, preserve the business as a going concern, and maximize the value of the enterprise by pursuing a sale,” Lisa Rhodes, CEO of Dots, said in a statement. “We are in the process of turning the business around, and the filing is another step toward doing that.”
Company spokesman Brandon Hatler told Twin Cities Business that Dots plans to close its Maplewood location on January 31. Dots currently operates seven additional stores in Minnesota: in Robbinsdale, Richfield, Roseville, Brooklyn Park, and three in St. Paul.
The company didn’t immediately respond to questions about how many employees were affected by the Maplewood store closure.
According to its bankruptcy filing, Dots has between $50 million and $100 million in estimated assets. Meanwhile, it has an estimated $100 million to $500 million in liabilities.
The company has between 1,000 and 5,000 creditors, the filing states. The largest claim, which is for more than $14 million, is by Robert Glick from Chagrin Falls, Ohio.
Dots was founded in 1989 and acquired by New York-based private equity firm Irving Place Capital in 2011.