Dots granted court approval of $3.73 million settlement of sale issues

By Caroline Salls

Pittsburgh, Dec. 22 – Dots, LLC obtained court approval of a $3.73 million settlement agreement with Gordon Brothers Retail Partners LLC resolving issues related to store-closing sales, according to a Monday filing with the U.S. Bankruptcy Court for the District of New Jersey.

Gordon Brothers was the buyer of substantially all of Dots’ assets and agreed to the equal share of any value received from the sale of Dots merchandise during store-closing sales that ended May 31, 2014.

The agreement also required that Gordon Brothers reimburse Dots for some expenses related to the sales.

After the sales concluded, the parties and their advisers disagreed on calculations of the amounts to be shared, according to the motion.

Gordon Brothers agreed following negotiations to avoid litigation to deposit $3.73 million into an escrow account, which will be released to Dots one day after court approval of the settlement.

In addition, Dots will release all claims against Gordon Brothers.

Dots, a Glenwillow, Ohio-based women’s clothing and accessories retailer, filed for bankruptcy on Jan. 20, 2014 under Chapter 11 case number 14-11016.

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