Private equity-backed Dots to file for bankruptcy protection

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clothes-scarvesPrivate equity-backed discount retailer Dots is reportedly preparing to file for bankruptcy protection.

Dots is currently working with restructuring advisers at PricewaterhouseCoopers and law firm Lowenstein Sandler, said the Wall Street Journal, citing people familiar with the matter.

The company, which is backed by private equity firm Irving Place Capital, has debts of $80m, said some of the sources. It is also in talks with asset manager Salus Capital Partners for debtor-in-possession financing.

Dots, which sells apparel to women between 25 and 35 years old, has seen its revenues drop in recent periods, though their magnitude is unclear, said the report.

Inrving’s previous investees include paperboard packaging company Chesapeake, which was sold to Carlyle in July last year.

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