Dollar Tree is moving into 170 locations previously operated as 99 Cents Only stores before the company went bankrupt.
Dollar Tree will take over the stores with its own branding and reopen as early as the fall.
The deal for the dozens of stores was completed via two transactions in May that were approved by the United States Bankruptcy Court for the District of Delaware. In April, 99 Cents Only filed for bankruptcy and shuttered all of its locations.
As part of the deal, Dollar Tree also acquired the North American Intellectual Property of 99 Cents Only Stores and select on-site furniture, fixtures and equipment, according to a company press release.
The stores are located in Arizona, California, Nevada and Texas, which help expand Dollar Tree’s footprint in Western states more cost effectively.
"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,” Dollar Tree’s chief operating officer Michael Creedon Jr. said in a press release.
“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," he said.
99 Cents Only stores had sold fresh groceries, but Dollar Tree sticks to items like household goods and party supplies.
Dollar Tree also owns Family Dollar and has close to 17,000 locations altogether.
In March, Dollar Tree announced it would close 1,000 underperforming stores. It also said it would carry products at higher price points, with some items costing as much as $7.
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