LOS ANGELES, May 29 (Xinhua) -- The U.S. discount variety store chain Dollar Tree announced Wednesday that it acquired designation rights for 170 leases of rival bankrupt 99 Cents Only Stores across Arizona, California, Nevada, and Texas.
The deal was completed via two transactions in May that were approved by the United States Bankruptcy Court for the District of Delaware, said the Fortune 200 Company, which operates over 15,500 stores across 48 states in the U.S. and five provinces in Canada as of early February, in a press release.
"As part of the transactions, Dollar Tree also acquired the North American Intellectual Property of 99 Cents Only Stores and select on-site furniture, fixtures, and equipment," said the Virginia-based company.
"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," said Michael Creedon, Jr., Dollar Tree's Chief Operating Officer, in the press release, noting that "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 said the company looks forward to welcoming customers from 99 Cents Only Stores as early as fall 2024.
Another discount retailer, Ollie's Bargain Outlet, announced earlier this month that it will acquire 11 former 99 Cents Only Stores locations.
In April, California-based 99 Cents Only Stores filed for bankruptcy and subsequently initiated a process to dispose of its assets, including its inventory, owned real estate and store leases. The deep-discount retailer said in a statement that it was planning to close all 371 of the company's stores and commence an orderly wind-down of its business operations after more than four decades.
CNN pointed out in a report that Dollar Tree and 99 Cents Only Stores "are very different" and "the announcement is a sign of consolidation in the retail industry."
99 Cents Only was a regional chain and sold groceries. Dollar Tree, a national company with mostly suburban locations, primarily offers discretionary merchandise like party supplies and home goods, according to the report.
