Dollar Tree Acquires Almost Half of 99 Cents Only Stores
New locations will reopen this fall in California, Arizona, Nevada and Texas
By Anna Staropoli May 29, 2024 5:10 pm
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Dollar Tree is giving more than its two cents.
The discount retail brand announced the purchase of 170 storefronts previously owned by Southern California-based 99 Cents Only Stores, following the latter company’s Chapter 11 bankruptcy filing in April. The acquired retail locations span the West and Southwest, with storefronts in California, Arizona, Nevada and Texas, according to a Dollar Tree statement.
“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,” Michael Creedon Jr., Dollar Tree’s chief operating officer, said in a statement. “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.”
The United States Bankruptcy Court for the District of Delaware approved the deal between the two money-branded companies. Per the transactions, Dollar Tree has also acquired 99 Cents Only Stores’ North American intellectual property, as well as any furniture and equipment in the brick-and-mortar locations. The new Dollar Tree stores are likely to open this fall, the statement said.
Dollar Tree’s purchase comes after 99 Cents Only Stores in April announced plans to close 371 stores, its entire retail portfolio. To explain its decline, the company cited the pandemic’s impact, evolving consumer interests, high inflation and other contributing factors.
In light of the subsequent bankruptcy filing, 99 Cents Only Stores announced plans to close 125 stores in April and the remaining 246 by May 31, most of which are in California. It’s unclear how many of those locations have already disbanded.
The storefront closings follow October’s $190 million sale of 99 Cents Only Stores’ 882,000-square-foot distribution facility in Los Angeles. Dedeaux Properties bought the facility.
Yet while Dollar Tree is saving more than 99 discount storefronts, the company’s money doesn’t grow on trees; the brand has faced its own financial setbacks this year. In March, Dollar Tree reported a loss of $1.89 billion in the fourth quarter of 2023, announcing subsequent plans to shutter hundreds of Family Dollar stores this year. (Dollar Tree purchased Family Dollar in 2015.) None of the locations stated for imminent closure are in California, however, according to CBS News.
That’s not to say Dollar Tree is Southern California’s only retail savior. Following 99 Cents Only Stores’ closing announcement in April, Pic ’N’ Save Bargains founder Mark J. Miller outlined plans to save 143 Golden State storefronts alongside a team of financiers and investors.
A spokesperson for Dollar Tree did not immediately respond to a request for comment.
Anna Staropoli can be reached at astaropoli@commercialobserver.com.
