Recently shuttered 99 Cents Only stores could soon have another discount banner atop California storefronts.
Dollar Tree is reportedly the winning bidder for at least 93 of the chain’s discount stores spread across the state, according to reports from the brokerage Retail Specialists. Most of the stores are in Southern California.
Bill Read, an executive vice president at the commercial real estate firm, posted three pages of 112 store addresses on the bidding list, a majority of them in California and a smattering in Arizona, Nevada and Texas.
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The bids and the undisclosed terms are subject to court approval.
99 Cents Only recently shuttered hundreds of stores nationwide after it filed for bankruptcy. It’s now in the process of selling off its assets.
Hilco Global began liquidating merchandise and certain fixtures, furnishings and equipment at all 371 99 Cents Only stores, starting April 5. Most of the stores closed a week ago after the discount sales waned.
In a company release, 99 Cents’ interim Chief Executive Officer Mike Simoncic said shifting consumer demand, rising “shrink” or theft and the pandemic “presented significant and lasting challenges in the retail environment.”
“Rising levels of shrink, persistent inflationary pressures and other macroeconomic headwinds all … greatly hindered the company’s ability to operate,” he said.
The upheaval in discount retail is a mixed bag, depending on the market and the shopping community.
Dollar Tree is acquiring stores even as it closes hundreds of others under the Family Dollar banner, which it bought in 2015 for $8.5 billion. In March, Dollar Tree said it would close 1,000 Family Dollar stores by 2025. The company has about 8,000 Family Dollar stores in total.
Meanwhile, its key rival, Dollar General, is expanding. The discounter opens roughly 1,000 stores a year with nearly 18,000 stores operating in the U.S. [