Dollar Tree acquires rights to 170 leases for 99 Cents Only Stores

Published on

Photo credit: Dollar Tree

CALIFORNIA – 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 

spot_img

Latest articles

Department of Labor reports over 90,000 California workers lost their job in the last two weeks

CALIFORNIA – The Department of Labor (DOL) published, June 13, an unemployment insurance weekly...

Daggett’s water distribution system completely fails – 2,412 gallons of water provided

DAGGETT –  Daggett, a town located 10 miles east of Barstow, had a complete...

11 bank branches closing soon in California – 80 closures so far in 2024

CALIFORNIA – There are 11 banks currently in the process of closing in...

CA taking comment on goal to conserve 30% of coastal waters – critics say overall policy harms younger residents

CALIFORNIA – The California Ocean Protection Council (OPC) is accepting public comment, until October...
Powered by Foreclosure.com

More like this

List of over 48 Rubio’s location closures in California

CALIFORNIA – Rubio’s Coastal Grill, a restaurant chain specializing in Mexican food, announced May...

Amazon Harnesses AI at Baldy Mesa Solar Farm Amid Safety Concerns

BALDY MESA –  Amazon announced, May 21, that its solar and storage farm in...

Red Lobster kitchen equipment and furniture auction ends May 16

CALIFORNIA – Red Lobster announced Monday that it would be closing more than 50...