Dots selects Gordon Brothers as closing sale stalking horse bidder

By Caroline Salls

Pittsburgh, Feb. 20 - Dots, LLC named Gordon Brothers Retail Partners as the stalking horse bidder in connection with the proposed sale of substantially all of its assets, according to a Thursday filing with the U.S. Bankruptcy Court for the District of New Jersey.

The stalking horse agreement calls for Gordon Brothers to conduct store-closing sales and guarantees that Dots will receive 40% of the retail value of the merchandise sold.

To the extent that the proceeds exceed the sharing threshold, the remaining proceeds will be split equally by the company and the stalking horse bidder.

If Gordon Brothers is not the winning bidder at an auction set for Feb. 26, Dots will pay it a $600,000 break-up fee and reimburse up to $150,000 of its sale-related expenses.

The minimum initial overbid at the auction will be 0.50% of the total retail price of the merchandise, plus assumption of any and all commitments made by Gordon Brothers in connection with in-transit merchandise, on-order goods and additional agent merchandise.

Dots, a Glenwillow, Ohio-based women's clothing and accessories retailer, filed for bankruptcy on Jan. 20 under the Chapter 11 case number 14-11016.

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