Over 200 closed 99 Cents Only stores, spanning from Texas to California, are set to be reopened as Dollar Tree locations. These leases were successfully secured through bankruptcy proceedings.
The United States Bankruptcy Court for the District of Delaware has approved the transfer of designation rights for 170 locations in Texas, Arizona, Nevada, and California, along with some of the furniture, equipment, and fixtures inside.
Shares of Dollar Tree Inc., headquartered in Chesapeake, Virginia, experienced a 2% increase at the opening bell on Thursday.
99 Cents Only Stores recently filed for Chapter 11 bankruptcy protection and has been divesting assets, including inventory and store leases. In April, the company announced its decision to shut down all 371 of its stores, marking the end of a 42-year run for the bargain outlet.
99 Cents Only has faced challenges due to changing consumer demand, inflation, and theft, which is a common issue among bargain store chains.
Dollar Tree reported an unexpected loss in its last quarter of 2023 and announced plans to shut down approximately 1,000 stores. The majority of these stores are Family Dollar locations, which were acquired over ten years ago for over $8 billion following a competitive bidding process against Dollar General.
In a prepared statement on Wednesday, Dollar Tree Chief Operating Officer Michael Creedon expressed optimism about the one-time 99 Cents locations, highlighting their strategic placement in priority markets with promising growth potential.
Dollar Tree is looking forward to reopening its stores in the near future, possibly as early as the fall.
