Nearly 200 shuttered 99 Cents Only stores to reopen as Dollar Tree locations

(AP) – Almost 200 shuttered 99 Cents Solely shops from Texas to California can be re-opened as Greenback Tree places after the leases have been secured out of chapter proceedings.

The switch of designation rights for 170 places in Texas, Arizona, Nevada and California, together with a few of the furnishings, gear and fixtures inside, was permitted by the US Chapter Courtroom for the District of Delaware.

Shares of Greenback Tree Inc., based mostly in Chesapeake, Virginia, rose 2% on the opening bell Thursday.

99 Cents Solely Shops filed for Chapter 11 chapter safety final month and has been shedding property starting from stock to retailer leases. The corporate mentioned in April that it will shut all 371 of its shops, ending a 42-year run for the cut price outlet.

99 Cents Solely had struggled for a while with shifting shopper demand, inflation and theft, and it’s not alone amongst discount retailer chains.

Greenback Tree posted a shock loss in its closing quarter of 2023 and mentioned that it will shut practically 1,000 shops, most of them Household Greenback shops that it had acquired a decade earlier for greater than $8 billion after a bidding conflict with rival Greenback Normal.

Greenback Tree Chief Working Officer Michael Creedon mentioned in a ready assertion on Wednesday that the one-time 99 Cents places are in precedence markets the place it expects sturdy development potential.

“The portfolio enhances our present footprint and can present us entry to prime quality actual property property in premium retail facilities, enabling us to quickly develop the Greenback Tree model throughout the western United States, reaching much more prospects and communities,” he mentioned.

Greenback Tree anticipates reopening the shops as early as the autumn.

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