Dozens of recently closed 99 Cents Only Stores in California will soon reopen under the banner of their former competitor, Dollar Tree.
On Wednesday, Dollar Tree announced it had acquired nearly 200 leases from 99 Cents Only Stores in California, Arizona, Nevada and Texas, with plans to reopen them under its name.
Most of these stores are in Southern California but include a handful of locations in the Bay Area, including Antioch, Hayward and Richmond, according to real-estate firm Retail Specialists. Dollar Tree expects to reopen these stores as early as the fall.
Dollar Tree did not immediately respond to a request for comment and details about the reopenings.
The California-based 99 Cents Only Stores filed for Chapter 11 bankruptcy last month, closing all 371 locations. The company cited changing consumer demand, inflation and the impact of COVID-19 as reasons for ending its 42-year run.
The acquisition was completed through two transactions in May, approved by the U.S. Bankruptcy Court for the District of Delaware. Dollar Tree also acquired 99 Cents Only Stores’ North American intellectual property, as well as some on-site furniture, fixtures and equipment.
Both retailers are known for offering a wide range of products for under a dollar, including household goods, fresh groceries, snacks, office supplies, health and beauty products, and party supplies.
“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,” Michael Creedon, Dollar Tree’s chief operating officer, said in a statement.
Despite this acquisition, Dollar Tree reported a loss in its fourth-quarter earnings. It also announced plans to close nearly 1,000 stores, mostly Family Dollar locations it acquired in 2015 for over $8 billion.
Meanwhile, its main competitor, Dollar General, recently announced plans to open 1,000 new stores, bringing its total to nearly 18,000 locations in the U.S.
Reach Aidin Vaziri: [email protected]
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