Dollar Tree Takes Over 99 Cents Stores

A U.S. Bankruptcy Court in Delaware has approved the transfer of designation rights for the leases of 170 shuttered 99 Cents Only outlets to industry giant Dollar Tree. 99 Cents Only Stores they would close 371 locations across the four states.

The 170 stores, located in Texas, Arizona, Nevada and California, will be reopened later this year as Dollar Tree outlets, Dollar Tree announced.

The deal was completed by two transactions in May that were approved by the US Bankruptcy Court for the District of Delaware. As part of the transactions, Dollar Tree also acquired the North American Intellectual Property of 99 Cents Only Stores and select on-site furniture, fixtures, and equipment.

In April, California based 99 Cents Only Stores filed for Chapter 11 bankruptcy and subsequently initiated a process to dispose of its assets, including its inventory, owned real estate and store leases.

99 Cents Only stores are on average approximately 20,000 square feet, more than double the size of a typical dollar store chain. “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.

The acquisition of 99 Cents Only leases out of bankruptcy gives Dollar Tree a cheaper way to grow their locations rather than building new stores.

The re-opening is proposed to be as early as Fall 2024.

Sources: https://news3lv.com/news/local/dollar-tree-buys-rights-to-99-cents-only-stores-in-nevada-bankruptcy-las-vegas-reno-california-arizona-texas-business-transaction https://abc7ny.com/post/dollar-tree-moving-into-99-cents-stores/14890001/ https://www.businesswire.com/news/home/20240528789378/en/