Bidder Announced for Dots Intellectual Property Assets
Hilco Streambank announced that Rainbow Shops will be the stalking horse bidder in the Chapter 11 auction of Dots intellectual property assets at an opening purchase price in the amount of $250,000. The bid deadline has been extended to 11:59PM ET Wednesday May 7th, 2014 to accommodate competing bidders.
The auction was rescheduled to Friday May 9, 2014. The marks include the well-known Dots apparel and accessories brand, the Dots.com domain name, and the company’s customer database. The assets will be sold to the highest bidder or bidders at the conclusion of the auction.
The Dots brand was established in 1987 and became a leading retailer of women’s apparel, footwear and accessories with approximately 400 stores in 28 states. After an extensive effort to restructure, the company filed for Chapter 11 bankruptcy protection on January 20, 2014. Hilco Streambank has been hired to manage the process to monetize all of the intellectual property.
“We have seen significant interest in the assets” said Jack Hazan, EVP of Hilco Streambank. “In addition to Dots being a recognized brand in women’s apparel, we also view the brand, and particularly the domain name, to have broad application across many categories in both the retail and non-retail sectors.” Hazan said.
Hilco Streambank indicated that it believes that the customer file is also quite valuable because it has been kept current and Dots has maintained effective communication with its customers through digital media. “Based on the reaction we have received from interested bidders for the Dots IP, we expect to see considerable competition from several bidders in this auction,” said Hazan.
Previously on abfjournal: Gordon Brothers Group to Close Dots Stores, February 28, 2014