SHOP MORE, SAVE DOTS!
Women are not shopping as much. Maybe it's because they don't have time after balancing work and family obligations, maybe i's because they don't want to spend money on themselves, or maybe it's because the merchandise is not as nice as it used to be. For women's discount clothing retailer 'DOTS,' they are hoping that it is the latter.
'DOTS' CEO Lisa Rhodes claims the previous management allowed the quality of the clothing to fall in order to save money. Rhodes states that she will improve the quality of the clothing to how it used to be and in turn, DOTS will win back the clients. Rhodes insists that by focusing on a target audience of plus size 25-35 year olds instead of smaller 20-30 year olds, DOTS will be more successful than ever. Critics look at the fragile retail market and are skeptical of the retailers ability to succeed over competitive retail giants such as Target and Wal-mart.
DOTS was founded in 1987 by Bob Glick and was later sold in 2011 to Irving Place Capital for an undisclosed price. DOTS is based outside of Cleveland in Glenwillow, Ohio and reports 400 stores in over 20 states in the Midwest, East and Southeast. At this point, DOTS has comitted to closing 36 under performing stores. DOTS filed for Chapter 11 reorganization on January 20, 2014 in Newark, New Jersey when it's 2013 sales dropped more than 13% from the previous year.
DOTS will use the bankruptcy process to renogotiate or reject the terms of lease contracts for its more than 200 retail stores across the country. DOTS is also using the bankruptcy process to look for a purchaser to buy the company. In the meantime, management is looking to beef up marketing by updating the website and offering customer loyalty programs and private label credit cards with rewards programs. This also allows time for executives to solicit customer feedback from social media and blogs. All of this positive thinking is good for DOTS' more than 3,500 employees and prospective new employees.
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