Discount store company Dollar Tree has completed the acquisition of 170 leases of 99 Cents Only stores in the US.
Dollar Tree will have the designation rights for stores across Arizona, California, Nevada and Texas.
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The transaction was finalised through two transactions in May 2024, following approval by the United States Bankruptcy Court for the District of Delaware.
The deal also includes North American intellectual property for 99 Cents Only and select on-site furniture, equipment and fixtures.
In April 2024, 99 Cents Only filed for Chapter 11 bankruptcy after an extensive review of viable options.
The retailer entered an agreement with Hilco Global for the liquidation of merchandise and disposal of fixtures and equipment.
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By GlobalDataDollar Tree chief operating officer Michael Creedo Jnr said: “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.
“The portfolio complements our existing footprint and will provide us access to high-quality real estate assets in premium retail centres, enabling us to rapidly grow the Dollar Tree brand across the western United States, reaching even more customers and communities.”
Headquartered in Tustin, California, 99 Cents Only offers household items, grocery, and seasonal and party merchandise.
According to a Reuters report, the company had 10,800 employees at the time of its bankruptcy filing.
The acquisition comes after Dollar Tree revealed plans to close 600 Family Dollar stores in the first half of fiscal 2024.
The company also anticipates closing 370 Family Dollar and 30 Dollar Tree stores through the mid-2020s.
Dollar Tree expects to welcome customers of 99 Cents Only stores from autumn 2024.
