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Discount retailer Dollar Tree announced Wednesday it had acquired leases from 170 closed 99 Cents Only stores and has plans to reopen the locations with Dollar Tree branding.

According to the announcement, Dollar Tree acquired leases for former 99 Cents Only locations in Arizona, Nevada, Texas and California. 99 Cents Only filed for bankruptcy in April and closed all of its 370 stores after struggling for years.

99 Cents Only was a regional chain that sold mostly groceries, while Dollar Tree and its subsidiary company, Family Dollar, sell home goods and other discount merchandise. The difference in the stores could prove a challenge for Dollar Tree as the 99 Cents Only locations are typically much larger than Dollar Tree or Dollar General stores.



However, the company will likely save money and expand quickly by acquiring leases as opposed to building new locations.

The expansion is somewhat surprising for Dollar Tree, as the company continues to deal with increased investigations by federal regulators for understaffed locations and dangerous working conditions.

Family Dollar has also underperformed in the years since the COVID-19 pandemic and filed for bankruptcy in March, closing around 1,000 stores across the country.

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