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A lifeline has emerged for some 99 Cents Only stores.
Dollar Tree said it has purchased 170 locations of the deep discount retailer across Arizona, California, Nevada, and Texas.
“As we continue to execute on 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., Dollar Tree’s chief operating officer, in a statement.
Creedon said that purchase of 99 Cents Only Stores complements Dollar Tree’s existing footprint and will help it grow the company’s brand across the western U.S.
Dollar Tree said it plans to “welcome customers from 99 Cents Only Stores” as early as this fall. The chain once boasted 371 U.S. locations.
As part of the the purchase, Dollar Tree said that it also has acquired the “North American Intellectual Property of 99 Cents Only Stores,” which includes “select on-site furniture, fixtures, and equipment.”
The deal was completed in two transactions in May and was approved by the U.S. Bankruptcy Court for the District of Delaware.
In early April, 99 Cents Only Stores said that it was going out of business after it could not come up with a solution that would allow it to continue operating. The decision was forced by numerous factors, according to Mike Simoncic, its CEO at the time, who pointed to a global pandemic, changes in consumer demand, and inflationary pressures as key reasons it had to cease operations.
Just days later, the bargain retailer said it would file for for Chapter 11 bankruptcy protection.