Nearly 200 closed “99 Cents Only” stores from Texas to California are set to reopen as Dollar Tree stores following the completion of bankruptcy proceedings.
According to a report by the Associated Press, the bankruptcy court in Delaware approved the transfer of 170 stores located in Texas, Arizona, Nevada, and California, along with some furniture, equipment, and fixtures.
Headquartered in Chesapeake, Virginia, Dollar Tree Inc. saw its stock rise by 2% at the opening of trading on Thursday, May 30th.
Last month, 99 Cents Only filed for Chapter 11 bankruptcy protection and has been selling off various assets such as inventory and store leases. In April, the company announced the closure of all 371 stores, ending its 42-year retail history.
Facing challenges such as changing consumer demands, inflation pressures, and theft, the struggles of 99 Cents Only are not unique among discount chain stores.
In the last quarter of 2023, Dollar Tree unexpectedly reported losses and announced the closure of nearly 1,000 stores, most of which were Family Dollar stores acquired over a decade ago for over $8 billion from its rival Dollar General.
Michael Creedon, Chief Operating Officer of Dollar Tree, stated in a press release on Wednesday, May 29th, that the former 99 Cents Only stores are located in markets with strong growth potential that the company views favorably.
Creedon said, “These stores will complement our existing market footprint, allowing us to enter high-quality real estate assets in top retail centers, thereby rapidly expanding the Dollar Tree brand in the western United States to serve more customers and communities.”
Dollar Tree plans to reopen these stores as soon as this fall.