Dozens of 99 Cents Only stores in Southern California will reopen as Dollar Tree
More than 70 shuttered 99 Cents Only Stores across Southern California will reopen as Dollar Tree locations as part of a massive acquisition by the discount chain.
Dollar Tree announced Wednesday it acquired the leasing rights for 170 99 Cents Only Stores across the states of California, Arizona, Nevada and Texas, with plans to reopen these retail locations as soon as this fall. The company also acquired the North American intellectual property rights for 99 Cents Only Stores as well as some furniture and equipment inside the closed retailers.
Based in Commerce, the 99 Cents Only chain announced last month it was closing down all 371 of its stores in four states.
Dollar Tree's acquisition includes a total of 170 stores that it plans to reopen — nearly half of all the closed 99 Cents stores.
The Virginia-based company did not release a list of the specific stores bought. But Bill Read, a commercial real estate expert with the firm Retail Specialists, compiled a list of all the individual locations acquired by Dollar Tree.
The list includes more than 70 stores in Southern California in cities such as Canoga Park, Glendale, Garden Grove, Downey, Port Hueneme, Ventura, Long Beach, Ontario, San Diego, Riverside, Lancaster, Norwalk, Valencia, Tustin and Simi Valley.
When 99 Cents Only announced the mass closures in April, many shoppers were especially disappointed in Southern California, where the company is headquartered and has operated stores since its founding in 1982. In Santa Ana, some shoppers rushed to the store after hearing about the company going out of business — making some last-minute purchases before it closed for good.
"Inflation has been high," said shopper Julie Ann Mckenzie. "So that's why I shop here. And it is close to home."
Dollar Tree released a statement Wednesday calling the acquisition "an attractive opportunity" with "strong profitable growth potential" as the company seeks to expand across the western region of the U.S.
"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," Michael Creedon Jr., Dollar Tree's chief operating officer, said in the company statement.
Last month, 99 Cents Only Stores said liquidation sales would begin immediately, the day after it announced stores being closed.
"This was an extremely difficult decision and is not the outcome we expected or hoped to achieve," interim company CEO Mike Simoncic said in a statement.
"Unfortunately, the last several years have presented significant and lasting challenges in the retail environment, including the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures and other macroeconomic headwinds, all of which have greatly hindered the company's ability to operate," Simoncic said.
