Dozens of recently closed 99 Cents Only stores across Southern California may soon reopen under the Dollar Tree brand. The Chesapeake, Virginia-based company has announced that it has secured leases for 170 shuttered locations of 99 Cents Only, a chain that recently declared bankruptcy. This move marks a significant shift in the retail landscape, as Dollar Tree seeks to expand its footprint in the competitive discount retail sector.
The acquisition was confirmed by Dollar Tree executives, who stated that the deal was approved by a bankruptcy court in Delaware. In addition to the leases, Dollar Tree has also acquired the North American intellectual property of 99 Cents Only, along with some furniture and equipment from the closed stores. This strategic decision aims to enhance Dollar Tree's offerings and welcome a new customer base as early as fall 2024.
The transition is expected to affect various locations, primarily in Southern California, including cities such as Lancaster, North Hollywood, Burbank, Long Beach, and Riverside. While there are also plans for a few stores in Arizona, Nevada, and Texas, the majority of the operations will focus on the Southern California region, which has been a stronghold for 99 Cents Only since its establishment in 1982.
The 99 Cents Only chain, known as a staple of discount shopping in Los Angeles, began its journey in 1982 with a single location. Unfortunately, the company recently announced its closure due to various factors, including changing consumer preferences and economic pressures like inflation. Previously, the chain operated 371 stores, but now many of those locations are left vacant and covered in graffiti.
Dollar Tree, on the other hand, has been facing its own financial challenges. In 2014, the company acquired Family Dollar Stores for over $8 billion, expanding its network to 15,000 stores. However, in light of current economic conditions, Dollar Tree announced plans to close nearly 1,000 locations, including about 600 Family Dollar stores in early 2024, alongside several Dollar Tree outlets in the coming years. This acquisition could be a pivotal moment for Dollar Tree as it looks to stabilize its operations and attract new clientele.
