Dollar Tree buys 99 Cents Only stores out of bankruptcy

Dollar Tree has acquired rights for 170 leases of 99 Cents Only stores in several states including California, the company announced in a statement Wednesday.

As part of the transactions, Dollar Tree has also acquired the North American Intellectual Property of 99 Cents Only Stores and select on-site furniture, fixtures, and equipment.

PREVIOUS COVERAGE: 99 Cents Only stores permanently closing

"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."

In April, California-based 99 Cents Only stores filed for bankruptcy and started the process to dispose of its assets, including its inventory, owned real estate and store leases at all 371 locations.

CEO Mike Simoncic said in a statement at the time that "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."

PREVIOUS COVERAGE: 99 Cents Only store shoppers stocking up

The stores, some of which had been around since 1982, started shutting down as early as the first week of April. The company had 99 Cents Only store locations across California, Texas, Arizona and Nevada.

"Dollar Tree looks forward to welcoming customers from 99 Cents Only Stores as early as fall 2024," the company said in a statement.

Dollar Tree also owns Family Dollar, based mostly in cities. Earlier this year, the company said it would be shutting down nearly 1,000 locations.