Last Updated on May 31, 2024 by The HD Post Staff
Photo credit: Dollar TreeCALIFORNIA – Dollar Tree announced May 29 that it has acquired designation rights for 170 leases of 99 Cents Only Stores across Arizona, California, Nevada, and Texas.
A designation right allows Dollar Tree to have control over key aspects of the 170 leases.
In April, 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.
“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 Dollar Tree’s chief operating officer Michael Creedon, Jr.
Significant and lasting challenges
99 Cents Only Stores announced in April, that they are winding down their business operations and would permanently close all of their 371 store locations.
“Unfortunately, the last several years have presented significant and lasting challenges in the retail environment, including the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures and other macroeconomic headwinds, all of which have greatly hindered the company’s ability to operate,” said 99 Cents Only Stores Interim Chief Executive Officer Mike Simoncic.
The company entered into an agreement with Hilco Global to sell 44 retail locations and development sites across four states. The bankruptcy auction closed on May 15.
Dollar Tree closing over 1,000 stores
Dollar Tree previously said in a March earnings call that they would be closing 1,000 stores – both Family Dollar and Dollar Tree brands over the course of the next several years.
In addition, they said prices will rise to around $1.50 and cap at around $7 for higher-priced items.
The company says they look forward to welcoming customers from 99 Cents Only Stores as early as fall 2024.
RELATED: 99 Cents Only Stores to permanently close all 371 locations
