Bankruptcy seemed to signal the end for trendy women’s clothing retailer Dots, which emptied its 359 stores with going-out-of-business sales this spring.
But a Florida firm in the retail industry bought the Dots brand and is slowly resurrecting it, saying it can avoid the problems that the juniors’ and plus-sized clothes retailer faced. The eighth Dots store opens Friday in South Philadelphia.
The retailer’s new owner—named New Dots LLC—plans to open 120 Dots stores by the end of next year, Chief Executive Swapnil Shah told Bankruptcy Beat.
Mr. Shah said he worked out deals with some landlords whose storefronts became vacate when Dots, which employed more than 3,500 people, shut down. Some of the same suppliers who once stocked Dots’ shelves have agreed to send fresh merchandise, he added.
Liquidators had a May 31 deadline to empty Dots’ stores, according to legal documents filed to the U.S. Bankruptcy Court in Newark, N.J. For several weeks after that, there was no Dots.
Mr. Shah’s firm reopened the Cleveland store first, a nod to the chain’s founding in Ohio in 1987. Roughly 75% of employees in the eight reopened stores worked there prior to the shutdown, he said.