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What Chapter 11 bankruptcy means
Filing for bankruptcy doesn't always mean the end for an American business.
CHESAPEAKE, Va. - Dollar Tree said it acquired leases for 170 locations of 99 Cents Only stores and will reopen these stores under the Dollar Tree brand later this year.
California-based 99 Cents Only Stores filed for Chapter 11 bankruptcy in April and closed all 371 of its locations.
In May, Dollar Tree acquired designation rights for 170 leases of 99 Cents Only Stores across Arizona, California, Nevada, and Texas, the company said in a statement shared on Wednesday. The deal was approved by the U.S. Bankruptcy Court for the District of Delaware.
Dollar Tree said it also acquired the North American Intellectual Property of 99 Cents Only Stores, as well as select on-site furniture, fixtures, and equipment.
FILE - Dollar Tree, an American multi-price-point chain of discount variety store, on April 3, 2024, in Sherwood Park, Strathcona County, Alberta, Canada. (Photo by Artur Widak/NurPhoto via Getty Images)
"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.
"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," Creedon added.
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Dollar Tree, which also owns Family Dollar, said it expects to welcome customers to the stores "as early as fall 2024."
In March, Dollar Tree and Family Dollar announced the closure of about 1,000 stores across the U.S. after suffering a significant quarterly loss. The closures included 600 Family Dollar stores in the first part of 2024, and another 370 Family Dollar and 30 Dollar Tree stores as their leases expire.
Red Lobster's bankruptcy filing
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Red Lobster files for Chapter 11 bankruptcy
Axios reporter Richard Collings joins LiveNOW's Andrew Craft to dissect Red Lobster's decision to file for Chapter 11 bankruptcy.
The discount variety stores aren't the only businesses falling on hard times. Red Lobster recently filed for Chapter 11 bankruptcy protection amid rising costs and an all-you-can-eat shrimp deal that backfired.
The seafood chain closed dozens of U.S. restaurants, including at least five locations in both California and Florida, and four in both Maryland and Colorado.
But after the bankruptcy announcement, Red Lobster sought to reassure fans – writing in a statement that the legal process is allowing them to make certain cost changes, including the "tough decision" to close some restaurants.
"We’ve been there for your celebrations, big and small. We may be the place that you first discovered your love of seafood. Or where you met the love of your life on a first date," the letter reads. "Red Lobster is determined to be there for these moments for generations to come."
This story was reported from Cincinnati.