Dollar Tree acquires leases for 170 99 Cents Only outlets

CHESAPEAKE, Va. — Dollar Tree announced on Wednesday that it acquired leases for 170 of 99 Cents Only Stores out of bankruptcy and will reopen the stores under its own brand in the fall.

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According to a news release, Dollar Tree, which is headquartered in Chesapeake, Virginia, bought the leases in Arizona, California, Nevada and Texas. The deal was approved via two transactions by the U.S. Bankruptcy Court for the District of Delaware.

As part of the deal, Dollar Tree also acquired the North American intellectual property rights of 99 Cents Only stores, the release stated.

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

The Orange County Register was the first news outlet to report the acquisition.

According to the newspaper, the bulk of the stores acquired by Dollar Tree -- 93 -- were in Southern California.

The 99 Cents Only chain was regional and also sold groceries, CNN reported. Dollar Tree, a discount retailer, offers items like home goods, school supplies and party supplies, according to the cable news outlet.

Dollar Tree was the last dollar store chain to sell everything for $1 before it raised prices in 2021 to $1.25 or more, CNN reported.

The 99 Cents Only chain began in 1982 with a single store on La Tijera Boulevard in Los Angeles, the Los Angeles Times reported. Before the company announced its closure and filed for Chapter 11 bankruptcy in April, the chain had grown to 371 locations, according to the newspaper.

“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 CEO, 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.”

Dollar Tree’s acquisition came after the company announced in March that it would shutter about 1,000 stores under the Family Dollar and Dollar Tree brands over the next several years.

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