Dollar Tree acquires leasing rights of a group of 99 Cents Only Stores

The designation rights for 170 leases of 99 Cents Only Stores have been acquired by Dollar Tree, the company announced Wednesday.

The locations are in Arizona, California, Nevada, and Texas, and the deal was completed via two transactions in May that were approved by the U.S. Bankruptcy Court for the District of Delaware.

Dollar Tree, based in Chesapeake, Va., also acquired the North American Intellectual Property of 99 Cents Only Stores and select on-site furniture, fixtures, and equipment.

99 Cents Only Stores filed for bankruptcy in early April and set a goal of closing all its 371 stores by May 31.

The company said in its filings that 99 Cents Only and its subsidiaries “lack sufficient liquid unencumbered assets to fund the wind-down efforts, sale process, and the limited operations [they] must maintain to maximize the value of their estates without the provision of new capital.”

In the bankruptcy filing, 99 Cents Only cited assets of between $1 billion and $10 billion, and liabilities in the same range. Its 10 largest creditors are owed nearly $35 million. Other obligations include about $6.3 million in payroll owed to its 10,864 employees.

Dollar Tree operates 8,277 stores in the U.S. as of May 14 according to ScrapeHero.