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The Dollar Tree Is Acquiring Nearly 200 Recently Closed 99 Cents Only Stores

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Dollar Tree
Dollar Tree location in Houston, Texas. PHOTO: JHVEPHOTO/GETTY

(CTN News) – It’s 99 cents at Dollar Tree. Businesses that were closed down earlier this year when the company went out of business are the only ones that are going to be given a new lease on life through this initiative. A little less than half of these stores are still opened for business.

On Wednesday, May 29, Dollar Tree made the announcement that it had gained the designation rights for 170 locations of 99 Cent Only stores across the states of Arizona, California, Nevada, and Texas. These stores are located in the states of Arkansas, California, Nevada, and Texas. In addition, it is projected that some of these stores may initiate their operations as early as the autumn of the year 2024.

This decision comes just one month after 99 Cent Only closed all 371 of its stores, with officials citing shifting economic conditions as the reason for the closure. The move comes as a result of shifting economic conditions.

Dollar Tree said in April that 99 Cents Only Stores had begun the process of filing for bankruptcy under Chapter 11 of the United States Code. In the time leading up to that, the organization had already initiated “a process to dispose of its assets, including its inventory, owned real estate, and store leases,” as stated in the announcement.

He claimed that the move “was an attractive opportunity” for the company to get their stores into “priority markets.”

This is what Dollar Tree CEO Michael Creedon Jr. said.

As of February 2024, the retail chains Dollar Tree, Family Dollar, and Dollar Tree Canada were the names of establishments that were responsible for the operation of 16,774 stores over the vast continent of North America. The locations of these stores were dispersed across the 48 states and Canada.

The United States Bankruptcy Court for the District of Delaware has reportedly given its approval to the acquisition of the 99 Cents Only locations, as stated in the announcement that was made by the firm. At present point in time, it is the owner of the intellectual property rights of 99 Cents Only stores located all throughout North America, in addition to a wide range of “furniture, fixtures, and equipment.”

Michael Simoncic, who was working as interim CEO of 99 Cents Only at the time, reported that the decision to close its stores in April was “not the outcome we expected or hoped to achieve.” Simoncic was referring to the fact that the decision was made.

“Unprecedented impact of COVID-19 on Dollar Tree,”

As well as a number of other factors, the decision was influenced by shifting consumer demand and rising shrink levels. A shrinkage occurs when an organization loses inventory as a result of shoplifting, theft by employees, fraud committed by vendors, or administrative errors within the organization.

According to KTLA, the company had 14,000 workers at the time of the shutdown. 1982 was the year that saw the opening of the very first 99 Cents Only store.

“We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades,” Simoncic said in his expression of appreciation. During the time when Chris Wells is stepping down from his job as Chief Restructuring Officer, he will be in charge of the “wind-down” of the corporation.

Dollar Tree, which had previously stated that it would be closing about one thousand locations while operating under the Family Dollar brand earlier this year, had purchased Family Dollar in 2014. Family Dollar had been in business since 2014.

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Alishba Waris is an independent journalist working for CTN News. She brings a wealth of experience and a keen eye for detail to her reporting. With a knack for uncovering the truth, Waris isn't afraid to ask tough questions and hold those in power accountable. Her writing is clear, concise, and cuts through the noise, delivering the facts readers need to stay informed. Waris's dedication to ethical journalism shines through in her hard-hitting yet fair coverage of important issues.

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