What to Know
- Some closed '99 Cents Only Stores' locations will reopen as Dollar Tree.
- Dollar Tree announced that it is buying the rights to 170 '99 Cents Only Stores' in Arizona, California, Nevada and Texas.
- The stores are expected to reopen as early as fall.
Dollar Tree will be branching out at new locations in four states, including Texas, after acquiring 170 of the '99 Cents Only Stores' slated for closure.
The company announced the move Wednesday, saying they'd bought the rights to '99 Cents Only Stores' name along with furniture and fixtures, as well as securing 170 leases in Arizona, California, Nevada and Texas.
There are 10 '99 Cents Only Stores' in North Texas, but the company did not provide details about which locations would be rebranded in its news release.
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Southern California-based 99 Cents Only Stores filed for Chapter 11 bankruptcy in April, starting the process of disposing of its assets, including inventory, real estate and store leases at all 370 locations. The closures delivered a financial blow to some consumers struggling to find affordable groceries.
There's no word yet on what may happen to the other 200 locations.
'99 Cents Only Stores' were founded in 1982. Unlike the discount grocery store, Dollar Tree is a discount variety store that offers items such as party supplies, crafts, snacks and cleaning supplies.
The transaction includes Dollar Tree's acquisition of the store leases and the intellectual property of '99 Cents Only Stores.'
"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 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.”
Dollar Tree, which also owns Family Dollar, said it is expecting to welcome customers to the stores as early as fall. The transaction allows the East Coast-based retailer to expand operations on the West Coast and Southwest without building new stores.
Dollar Tree acquired Family Dollar for more than $8 billion in 2015.
In March, Dollar Tree and Family Dollar announced the closure of nearly 1,000 stores. That plan included 600 Family Dollar stores in the first half of 2024 and 370 Family Dollar and 30 Dollar Tree stores over the next several years.
