Dollar Tree acquires rights to 99 Cents Only stores; SoCal locations could soon reopen

Dozens of shuttered 99 Cents Only stores in Southern California could soon reopen as Dollar Tree stores.

Dollar Tree confirmed Wednesday that it acquired the rights for 170 locations across Arizona, California, Nevada and Texas. Most of them are reportedly in Southern California. The deal to acquire the leases to the stores was completed through two transactions in May.

The news comes after 99 Cents Only announced it was closing more than 300 stores and filing bankruptcy in April. The company cited the pandemic, shifting consumer demand and inflation. Shelves quickly emptied out during liquidation sales.

The parking lots are full and the checkout lines are long at 99 Cents Only stores, which are closing for good soon.

Dollar Tree's acquisition comes as somewhat of a surprise after the company announced earlier this year that it would close nearly a thousand locations, including some Family Dollar stores.

"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," Michael Creedon, Jr., Dollar Tree's Chief Operating Officer, said in a statement.

Bill Read, an executive vice president with the commercial real estate firm, Retail Specialists, posted a list of stores online showing Dollar Tree was a successful bidder for certain 99 Cents Only locations.

Most of the stores on that list are in Southern California in places like Burbank, Long Beach, Lancaster, Santa Ana, North Hollywood and more.

Dollar Tree was not able to provide an official list of stores it acquired.