Dollar Tree to acquire 99 Cents Only stores

Chesapeake-based Fortune 500 discount retailer Dollar Tree has acquired 170 leases of another discount retailer, 99 Cents Only, the company announced Wednesday.

The stores are across Arizona, California, Nevada and Texas.

In April, Commerce, California-based 99 Cents Only filed for Chapter 11 bankruptcy protection and initiated a process to sell its assets, including inventory, owned real estate and store leases, according to a news release from Dollar Tree. Dollar Tree’s purchase includes the North American intellectual property of 99 Cents Only stores, on-site furniture, fixtures and equipment. There are 371 total 99 Cents Only stores, so Dollar Tree is not buying all the locations.

According to a Reuters report about the bankruptcy, 99 Cents Only planned to close 125 stores by April 30 and the rest by May 31. In its release, Dollar Tree said it “looks forward to welcoming customers from 99 Cents Only Stores as early as fall 2024.”

“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.”

Dollar Tree had 16,774 stores across 48 states and five Canadian provinces as of Feb. 3. The stores operate under the brands Dollar Tree, Family Dollar and Dollar Tree Canada.