Dollar Tree acquires 170 of bankrupt 99 Cent Only’s stores in California, Arizona, Nevada and Texas – set to reopen under new branding in the fall

Dollar Tree has rescued 170 stores that were set to be closed by rival 99 Cents Only after it filed for bankruptcy.

It’s a boost for budget shoppers in Arizona, California, Nevada and Texas, who are mourning the loss of the popular chain.

Dollar Tree announced Wednesday that it had purchased the rights to the leases for the stores.

At the same time, it has paid for 99 Cents Only’s “intellectual property,” meaning it has the option to keep open some branded stores or even open new ones that use it.

West Coast-based 99 Cents Only had a cult following in the four states. But high inflation and rising theft forced the country to file for Chapter 11 bankruptcy and announce the closure of all 371 locations.

Loyal shoppers were seen flooding 99 Cents Only stores in April as the chain prepared to wind down its operations. Pictured: A store in Torrance at 5130 W 190th Street

It has been clearing supplies ever since. Die-hard 99 Cents Only shoppers have flocked to stores and emptied the shelves to score bargains.

“As we continue to execute our accelerated growth strategy for the Dollar Tree brand, this was an attractive opportunity to secure leases in priority markets where we see strong profitable growth potential,” said Michael Creedon Jr., Chief Operating Officer of Dollar Tree .

He said the 99 Cents Only locations will allow Dollar Tree to get stores in “premium retail centers” where it currently has no stores.

“It allows us to rapidly grow the Dollar Tree brand in the western United States, reaching even more customers and communities,” he added.

Dollar Tree plans to open at these new locations as early as fall 2024. The addresses of the 170 have yet to be released, but we will update this article as soon as we know.

Meanwhile, fellow discount chain Ollie’s announced earlier this week that it will acquire 11 former 99 Cents Only Stores in Texas for $14.6 million in cash. See below for the full addresses.

“We are very excited to be announced as the winning bidder of these retail locations,” Ollie’s CEO John Swygert said in a rack.

‘These stores are the right size, located in good trading areas, have attractive rental and leasing structures and have been serving value-oriented customers for years.

“Texas is a great market for us with tremendous growth potential and continues to benefit from strong population growth.”

Based in Pennsylvania, Ollie’s operates 516 stores in 30 states.

Dollar and budget stores have had a tough year. While all stores are struggling to keep up with high inflation, it is hitting value retailers the hardest due to their already tight margins.

Dollar Tree said last month it was raising the maximum price limit for its goods to $7.

The company also owns Family Dollar and plans to close nearly 1,000 of them — 600 this year and the rest when leases expire.

Ollie’s Bargain Outlets is purchasing 11 of the closed 99 Cents Only Stores stores

In recent months there has been a wave of bankruptcies and store closures.

National coffee and luxury supermarket chain Foxtrot also said in early April that it will close all its stores with immediate effect, leaving staff and customers stunned.

Founded in 2014 in Chicago, Foxtrot had 33 locations in the Chicago, Austin, Dallas and Washington DC areas.

Express – another major retail chain – filed for bankruptcy in April and said it would close 95 Express stores in addition to all of its UpWest stores.

In early May, Rue21 — the teen fashion chain that is a fixture in malls across America — also said it will close all of its 543 U.S. stores.