Nearly half of the 99 Cent Only stores that closed earlier this year when the company went out of business are about to get new life.
On Wednesday, May 29, Dollar Tree announced that it has acquired branding rights to 170 99 Cent Only store locations across Arizona, California, Nevada and Texas — with some expected to open as early as fall 2024.
The move comes just a month after 99 Cent Only closed all 371 of its stores, with executives citing changing economic conditions as the reason.
99 Cents Only Stores filed for Chapter 11 bankruptcy in April, before beginning “the process of disposing of its assets, including inventory, real estate owned and store leases,” according to a Dollar Tree release.
The move “was an attractive opportunity” for the company to position its stores in “priority markets,” according to Dollar Tree CEO Michael Creedon, Jr.
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Dollar Tree location. ohn Greim/LightRocket via Getty
As of February 2024, Dollar Tree operated 16,774 locations across North America (in 48 states and Canada), under its Dollar Tree, Family Dollar and Dollar Tree Canada brands.
According to a company announcement, its purchase of 99 Cents Only locations was approved by the United States Bankruptcy Court for the District of Delaware. It now owns the North American Intellectual Property of 99 Cents Only stores, as well as various “furniture, fixtures and fittings”.
Then-interim CEO of 99 Cents Only, Michael Simoncic, called the decision to close stores in April “not the result we expected or hoped to achieve,” citing “the unprecedented impact of the COVID-19 pandemic, fluctuating consumer demand and rising levels of curtailment.” among other reasons as a cause. “Shrinkage” refers to loss of inventory due to shoplifting, employee theft, vendor fraud, and clerical errors.
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The first 99 Cents Only store opened in 1982, and at the time of its closure, the company employed 14,000 workers, according to KTLA.
“We deeply appreciate the dedicated employees, customers, partners and communities who have collectively supported 99 Cents Only Stores for decades,” added Simoncic. He will step down as chief restructuring officer Chris Wells looks after the “winding down” of the company.
Dollar Tree, which bought Family Dollar in 2014, announced earlier this year that it was closing approximately 1,000 stores under its Family Dollar brand.
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Source: HIS Education