Dots Files for Bankruptcy Protection

Dots LLC (Glenwillow, Ohio), a 400-store clothing chain for young women, has filed for bankruptcy protection, blaming prior management, the economy and leases that cost too much.

The company, founded by Bob Glick in 1987, has arranged to borrow $36 million to keep it operating as it reorganizes under court protection and implements a new merchandising strategy, according to an e-mailed statement.

Dots said in its Chapter 11 filing that it’s running low on cash. In October 2013, vendors began demanding payment for new goods faster than the company could afford, “causing significant liquidity challenges,” ceo Lisa Rhodes said in a court affidavit. Rhodes is a former senior vp for Walmart Stores Inc. (Bentonville, Ark.).

The retailer was bought by Irving Place Capital Management LP (New York) in 2011. Irving Place has also invested in several retail brands,  including Aeropostale, Vitamin Shoppe, Seven for All Mankind and Stuart Weitzman.

Dots has secured a commitment from its existing lender, Salus Capital Partners (Needham Heights, Mass.), its existing lender. It has closed more than 30 underperforming stores and said it will continue to evaluate the possibility of additional store closures over the next few months.