Dots LLC, a private equity-owned discount retailer is getting ready to possibly file for bankruptcy protection as it tries to stay in business amid keen competition emanating from its competitors online, according to a report on the Wall Street Journal which cited sources familiar with the situation. Owned by Irving Place Capital, the sources said the company carries an estimated debt amounting to $80 million.

The people said that "flash" sales or those sales which happen at limited periods on well-known sites like Rue Lala and Gilt have taken away revenue from Dots. They added that the sales of the discount retailer have gone down recently, the WSJ reported.

Dots focuses its business on women ranging from 25 to 35 years of age, describing itself as a "fast fashion party place for women's apparel and accessories at exceptional prices." The retailer, which has over 400 stores spread out in 28 states, has engaged the services of restructuring advisers from PricewaterhouseCoopers and the law firm of Lowenstein Sandler LLP, the report said.

The sources also said that Dots, based in Glenwillow, Ohio, is also discussing with Salus Capital Partners, an asset management company, for debtor-in-possession financing. Dots obtained financing amounting to around $50 million from Salus Capital six months ago, the report said.

Should Dots push through with its decision, it would be the most recent among discount retailers who are seeking bankruptcy protection as flash-sale sites prove to be tough competition, the report said. In December Loehmann's Holdings Inc filed for bankruptcy under Chapter 11. The discount retailer had already filed for bankruptcy two times before. In November 2011, Syms Corp and its subsidiary Filene's Basement LLC also sought bankruptcy protection. It later liquidated. In August 2012, Daffy's Inc filed for bankruptcy and liquidated, shuttering 19 stores in the process, the WSJ reported.