Some 200 shuttered 99 Cents Only stores to open as Dollar Tree locations
A pedestrian walks past a 99 Cents Only store under light rain in Los Angeles on Dec. 5, 2018. Dollar Tree is planning to reopen some 99 Cents Only stores that have closed, rebranding them and filling them with their own products. Dollar Tree said that the 170 stores are located in Arizona, Texas, California, and Nevada. (AP Photo/Damian Dovarganes, File)
Nearly 200 shuttered 99 Cents Only stores from Texas to California will be re-opened as Dollar Tree locations after the leases were secured out of bankruptcy proceedings.
The transfer of designation rights for 170 locations in Texas, Arizona, Nevada, and California, along with some of the furniture, equipment, and fixtures inside, was approved by the United States Bankruptcy Court for the District of Delaware.
Shares of Dollar Tree Inc., based in Chesapeake, Virginia, rose 2 percent at the opening bell Thursday.
READ: 99 Cents Only stores to close all locations
99 Cents Only Stores filed for Chapter 11 bankruptcy protection last month and has been shedding assets ranging from inventory to store leases. The company said in April that it would close all 371 of its stores, ending a 42-year run for the bargain outlet.
Shifting consumer demand, inflation and theft
99 Cents Only has struggled for some time with shifting consumer demand, inflation, and theft, and it’s not alone among bargain store chains.
Dollar Tree posted a surprise loss in its final quarter of 2023 and said that it would close nearly 1,000 stores, most of them Family Dollar stores that it had acquired a decade earlier for more than $8 billion after a bidding war with rival Dollar General.
READ: Investor group trying to save SoCal’s 99 Cents Only stores
Dollar Tree Chief Operating Officer Michael Creedon said in a prepared statement on Wednesday that the one-time 99 Cents locations are in priority markets where it expects strong growth potential.
“The portfolio complements our existing footprint and will provide us access to high-quality real estate assets in premium retail centers, enabling us to rapidly grow the Dollar Tree brand across the western United States, reaching even more customers and communities,” he said.
Dollar Tree anticipates reopening the stores as early as the fall.
