Ollie’s Acquisition of 99 Cents Only Stores Saves Locations from Bankruptcy
Several 99 Cents Stores have been saved from bankruptcy thanks to rival discount retailer Ollie’s. Ollie’s announced on May 24 it will acquire 11 former 99 Cents Only Stores, saving them from shuttering forever. On April 4, 99 Cents Only announced it would shut down all its stores. The discount chain filed for Chapter 11 bankruptcy less than one week later. At the time, the chain had 371 locations across California, Arizona, Nevada, and Texas. 99 Cents Only Stores owed its top 10 creditors almost $35 million, according to court documents.
Rescued from Bankruptcy: Ollie’s Acquisition of 99 Cents Only Stores
The bankrupt chain was given a new lease on life thanks to Ollie’s, the largest US retailer of closeout merchandise and excess inventory. Ollie’s said the US Bankruptcy Court for the District of Delaware approved its $14.6 million bid for the 99 Cents Stores, per Retail Dive. All 11 of the acquired stores are in “key markets” in Texas, according to Ollie’s. Three are owned properties and eight are leased. The store acquisitions are expected to close early next month. “We are very excited to be announced as the winning bidder of these store locations,” said Ollie’s CEO John Swygert.
Expanding Ollie’s Reach Across the States
Ollie’s runs 516 stores across 30 states but is looking to grow its store footprint. The retailer shared in a March earnings call that it has room to expand to 1,300 locations, which is up from a previous goal of 1,050. Acquiring the 99 Cents Only Stores is one step on Ollie’s path to a larger store footprint.
States with Ollie’s Locations: A Growing Presence
Ollie’s Bargain Outlet is a US chain of discount closeout retailers founded in Mechanicsburg, Pennsylvania in 1982 by Morton Bernstein and Mark Butler. There are currently 30 states with Ollie’s locations, including Texas where the new acquisitions will strengthen their presence. “We are maintaining our target of 50 new stores, less two planned closures, for fiscal 2024 and are in the early stages of evaluating the impact on our new store opening cadence this year,” said Swygert.
In conclusion, the acquisition of 99 Cents Only Stores by Ollie’s not only saved numerous locations from bankruptcy but also paves the way for Ollie’s expansion and growth across various states, including Texas. With a strategic approach and a focus on delivering value-oriented products to their customers, Ollie’s continues to solidify its position in the discount retail market.