Almost 200 shuttered 99 Cents Solely shops to open as Greenback Tree areas

CHESAPEAKE, Va. — Almost 200 shuttered 99 Cents Solely shops from Texas to California can be reopened as Greenback Tree areas after the leases have been secured out of chapter proceedings.

The switch of designation rights for 170 areas in Texas, Arizona, Nevada and California, together with among the furnishings, tools and fixtures inside, was permitted by america Chapter Courtroom for the District of Delaware.

Shares of Greenback Tree, based mostly in Chesapeake, Virginia, rose 2% on the opening bell Thursday.

99 Cents Solely Shops filed for Chapter 11 chapter safety final month and has been shedding property starting from stock to retailer leases. The corporate mentioned in April that it could shut all 371 of its shops, ending a 42-year run for the cut price outlet.

99 Cents Solely had struggled for a while with shifting shopper demand, inflation and theft, and it is not alone amongst cut price retailer chains.

Greenback Tree posted a shock loss in its last quarter of 2023 and mentioned that it could shut practically 1,000 shops, most of them Household Greenback shops that it had acquired a decade earlier for greater than $8 billion after a bidding conflict with rival Greenback Common.

Greenback Tree chief working officer Michael Creedon mentioned in a ready assertion on Wednesday that the onetime 99 Cents areas are in precedence markets the place it expects robust development potential.

“The portfolio enhances our current footprint and can present us entry to high-quality actual property property in premium retail facilities, enabling us to quickly develop the Greenback Tree model throughout the western United States, reaching much more clients and communities,” he mentioned.

Greenback Tree anticipates reopening the shops as early as the autumn.