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Dots on the spot Bankruptcy filing outlines difficult challenges ahead for women’s retailer By MICHELLE PARK LAZETTE mpark@crain.com
Like the high heels it sells, the task before Dots LLC is tall. According to the Chapter 11 bankruptcy petition Dots filed Jan. 20 and sources close to the situation, the women’s apparel and accessories retailer turned off its core customer base by carrying lowerquality inventory, and now faces the strain of suppliers that won’t extend it credit. While the bankruptcy code lets Glenwillow-based Dots shed fixed costs, in part by allowing it to reject leases on underperforming locations, it won’t relieve Dots of all its challenges, said John M. Mueller,
who worked for a private equity fund that invested in distressed retailers in the early 1990s. And convincing the discontented to shop again at the retailer’s 400some stores is no small feat, said John K. Lane, former president of the Ohio chapter of the Turnaround Management Association and managing director and CEO of Inglewood Associates LLC, a turnaround and business improvement advisory firm. “Customers have a lot of retail choices, and people are creatures of habit,” Lane said. “Once you’ve offended someone so much that you’ve changed their habit, trying to win them back is a huge challenge.” See DOTS Page 7
Clinic is keeping Akron General in its wide-ranging sights By TIMOTHY MAGAW tmagaw@crain.coms
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If you thought the Cleveland Clinic’s interest in a deal for Akron General Health System was dead, you thought wrong. Cleveland Clinic CEO Dr. Toby Cosgrove told Crain’s the health system still is interested in a takeover of Akron General, even after a joint venture to do so with
University Hospitals, a suspected suitor, says it isn’t interested in Summit County health system as potential expansion target Community Health Systems — a large, for-profit hospital chain out of Tennessee — fell apart in early January. At the same time, University Hospitals, which recently took over community hospitals in Parma and Elyria, said it wasn’t interested in the Akron hospital.
Should the pursuit of Akron General by the region’s largest health system prove successful, it would make for a commanding move by the Clinic in Summit County, where its presence is sparse at best. The Clinic, which boasts about $6 billion in annual operating rev-
enue, had similar talks with Akron General back in 2007, but those negotiations fizzled. The Clinic, of course, likely isn’t alone in its pursuit for Akron General. Without naming names, Akron General said it’s considering “mul-
INSIDE: Bringing two hospitals together is a complicated process that might require a “test drive.” Page 13 tiple partnership opportunities.” Like University Hospitals, though, other large Ohio health systems — including Summa in Akron and ProMedica in Toledo — confirmed they are not in discussions with Akron General. See CLINIC Page 17
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HEALTH CARE LAW A busier legal industry is feeling the effects of the Affordable Care Act ■ Page 13 PLUS: SOCIAL MEDIA VS. PRIVACY ■ KEEPING DATA SECURE
Entire contents © 2014 by Crain Communications Inc. Vol. 35, No. 5