Dollar Tree snaps up 170 leases from stricken 99 Cents business

Dollar Tree snaps up 170 leases from stricken 99 Cents business
(Source: Bigstock)

Discount retail store Dollar Tree is to take over the leases of 170 former 99 Cents Only Stores across Arizona, California, Nevada, and Texas.

This acquisition followed 99 Cents Only Stores’ filing for bankruptcy in April and the company’s decision to sell off assets, including inventory, owned real estate, and store leases.

Dollar Tree has also acquired 99 Cents Only Stores’ North American intellectual property and selected furniture, fixtures, and equipment.

Dollar Tree COO Michael Creedon said the company saw an opportunity to secure leases in priority markets with 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 US, reaching even more customers and communities,” he added.

The move is expected to expand the company’s presence in the western US, allowing it to reach a broader customer base.

Both Dollar Tree and 99 Cents Only Stores are known for offering affordable products. Dollar Tree sells items for $1 or less, while 99 Cents Only Stores primarily offers products at 99 cents.

The acquisition was completed in May through two transactions approved by the US Bankruptcy Court for the District of Delaware.

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