Dots LLC, the 400-store clothing chain for young women, filed for bankruptcy protection, blaming prior management, the economy and leases that cost too much, Bloomberg News reported yesterday. The company, founded 27 years ago outside Cleveland, has arranged to borrow $36 million to keep operating as it reorganizes under chapter 11 protection and implements a new merchandising strategy. In October, vendors began demanding Dots pay for new goods faster than the company could afford, “causing significant liquidity challenges,” Chief Executive Officer Lisa Rhodes said in a court affidavit filed yesterday. For the 12 months ending Jan. 31, the company had about $293.7 million in sales, Rhodes said. That’s down from $338.8 million in the previous 12 months and $346.2 million the year before that.
