Retail

Retailer Dots Bounces Back After Shutting Down in Bankruptcy

August 4, 2014

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 Wall Street Journal reported on Friday. 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 said. Shah said he worked out deals with some landlords whose storefronts became vacant when Dots, which employed more than 3,500 people, shut down. Some of the same suppliers that 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 in the U.S. Bankruptcy Court in Newark, N.J.

Dollar Tree Agrees to Buy Family Dollar

July 28, 2014

Dollar Tree Inc. agreed to acquire Family Dollar Stores Inc. in a cash-and-stock deal that values the struggling discount retailer at about $8.5 billion, the Wall Street Journal reported today. The agreement, which provides Family Dollar with a roughly 23 percent premium over the company's closing stock price on Friday, comes as activist investor Carl Icahn has been pushing for a sale of Family Dollar and threatening to replace the discount retailer's board. Icahn has amassed a nearly 9.4 percent stake in Family Dollar, according to a recent regulatory filing. Dollar stores have been altering their merchandise lineups to hang on to customers they gained during the recession, as well as to continue to attract those struggling in the current economic environment. The retailers also are facing growing competition from Wal-Mart Stores Inc., which is opening smaller locations.