dotsAcquisition Opportunity:

Intellectual Property Assets - DOTS®

Bid Deadline: May 7th, 2014 11:59 EST
Auction Date: May 9th, 2014

INVESTMENT OPPORTUNITY

Hilco Streambank has been retained by Dots, LLC (“Dots” or the “Company”) as its exclusive agent to sell the intellectual property assets associated with the well-known Dots® women's retail fashion brand. The assets include the Dots® trademark and the www.dots.com premium domain name. The assets will be sold in a Bankruptcy Court approved sale process.

BACKGROUND

Dots was a leading retailer of value-priced women’s clothing, footwear and accessories, serving the junior, misses and plus-size markets for more than 25 years. Dots is widely known for its broad assortment of hip, fun and trendy apparel and accessories offered at exceptional values. The majority of the products offered at the stores are Dots® branded. Prior to its recent chapter 11 filing, the chain operated approximately 400 stores in off mall and high traffic urban locations spanning 27 states in the East, Southeast and Midwest regions of the United States. In addition to its retail locations, Dots ran an active and growing online e-commerce platform at www.dots.com. Net sales for the fiscal year 2013 (12 months ended January 2014), were approximately $287MM and $3.9MM for in-store sales and e-commerce sales, respectively. In the years prior to the recent downturn, sales were well in excess of $300MM.

Dots

CURRENT SITUATION

For most of its 25 year operating history, Dots has operated profitably. However, the economic downturn of the past few years created a difficult operating environment for Dots and for apparel retailers in general. In 2011, the Company was acquired by Irving Place Capital, a leading middle market private equity firm. Despite extensive restructuring efforts, the Company was not able to effectively reorganize. On January 20, 2014 Dots filed for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey (the “Bankruptcy Court”). The retail stores are currently being liquidated and the real estate leases are being marketed through a Bankruptcy Court approved sale procedure. Hilco Streambank was retained to market and sell the Company’s intellectual property assets.

IP ASSETS AVAILABLE

DotsTrademarks

  • 17 Registered United States Trademarks*
  • 11 Allowed United States Intent to Use Trademarks

Domain Names
13 domain names including Premium Domain Name -- DOTS.COM

  • Generic Single Word Domain Name.
  • As the e-commerce website had close to 1 million visitors per month
  • Can be bought separately from the Dots Trademarks and used for other unrelated businesses

Customer File

  • A customer file that contains approximately 6.9MM customer records. Please contact us for more information

*See attached appendix for full schedule of registered trademarks

DILIGENCE & SALES PROCESS

  • Online Data-site with detailed diligence information regarding the offerings will be provided upon execution of a non-disclosure agreement
  • The IP Assets will be sold through a Bankruptcy Court approved sale process. Assets will be transferred subject to a Bankruptcy Court order granting buyers free and clear title to the purchased assets
  • Bid Deadline - May 6th, 2014 & Auction Date - May 8th, 2014