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Dailymail.com reports that almost a dozen 99 Cents Only stores have been saved from closure by a rival.
Ollie’s Bargain Outlet has stepped in to buy 11 shops from the now-bankrupt company, and they will open under new branding after the old stores finally shut in early June. The US Bankruptcy Court for the District of Delaware approved the purchase for $14.6 million in cash last week.
The 99 Cents Only Stores announced on April 4 that it would shutter all 371 locations, blaming inflation and rising theft as the chief culprits.
So far, the only stores to be spared are in Texas.
The popular discount chain had stores in California, Texas, Arizona and Nevada before filing for Chapter 11 bankruptcy. Ninety-nine Cents Only Stores are due to close officially next month.
Meanwhile, Mark Miller, former president of Big Lots, is hoping to acquire 143 stores in California. Miller has reportedly put together a group of investors, and said he has a bankruptcy attorney in “constant communication” with all parties.
“I think we’re in as good a position as anybody to take a piece of these 143 stores,” Miller said.
The 99 Cents Only franchise is one of several retailers facing massive closures in 2024.
Dollar and budget stores have had a rough year. While all shops are struggling to keep up with inflation, it affects value retailers worst due to their already-tight margins.
Dollar Tree said last month it was raising the maximum price cap on its goods to $7.
The company also owns Family Dollar, and plans to shutter nearly 1,000 of those—600 this year and the rest when leases end.
