| Metric | Details |
|---|---|
| Status | Liquidated. Chapter 11 filed April 7, 2024 (In re Number Holdings, Inc., Bankr. D. Del., Case No. 24‑10719) |
| Parent | Number Holdings, Inc., controlled by affiliates of Ares Management and Canada Pension Plan Investment Board after the January 13, 2012 take-private |
| Stores at filing | 371: California 265, Texas 46, Arizona 39, Nevada 21, plus five distribution centers |
| Average store size | About 20,000 square feet |
| Credit ratings | No verified current S&P, Moody’s or Fitch rating |
| Investment grade status | No Longer Operating (Not Rated) |
| Plan confirmed | January 24, 2025; effective January 31, 2025 |
| Buyers reported in SEC filings | Dollar Tree (designation rights for up to 170 leases; secured 164); Ollie’s Bargain Outlet (ten Texas locations, three owned and seven leased, for about $14.6 million) |
99 Cents Only is no longer operating. 99 Cents Only is no longer operating; our ratings database holds no current verified rating for it. Ratings checked September 27, 2026. See the investment grade credit tenant ratings table.
What Was 99 Cents Only Stores?
99 Cents Only Stores was a deep-discount retailer that opened its first store in 1982 and built its business on selling merchandise at a price point of 99.99 cents or less. It carried food and grocery items, including frozen, dairy, deli and a full fresh produce offering, alongside closeout and general merchandise. At its April 2024 bankruptcy filing it operated 371 stores in four states, with 265 of them in California, and it also sold merchandise wholesale through its Bargain Wholesale division.
The company was taken private in January 2012 by Ares Management and the Canada Pension Plan Investment Board (now CPP Investments). Its stores averaged about 20,000 square feet, a box size that matters for anyone underwriting the buildings today.
Why 99 Cents Only Failed
In its first-day declaration, the company pointed to the COVID-19 pandemic, rising theft and inventory shrink, record inflation, higher labor costs from minimum wage increases in California, and growing competition. Passing higher costs on to customers met resistance: the share of merchandise priced at 99.99 cents or less fell from nearly 65% in 2020 to below 50% in 2023, eroding the price promise the brand was built on. A turnaround plan launched in early 2023 did not produce enough cash, and a sale process run by Jefferies, which contacted 32 prospective buyers, did not produce a going-concern deal.
What Happened to the Real Estate
The company’s leases and owned properties were sold through a court-supervised process. Two buyers reported their purchases in SEC filings:
- Dollar Tree: acquired designation rights for up to 170 leases across Arizona, California, Nevada and Texas, secured 164 of them, and reported in its fiscal 2024 10‑K that substantially all had opened as Dollar Tree stores. See Dollar Tree credit rating and NNN cap rate.
- Ollie’s Bargain Outlet: first agreed to buy eleven former locations for $14.6 million and ultimately acquired ten Texas locations (three owned, seven leased) for about $14.6 million, according to its SEC filings. See Ollie’s Bargain Outlet.
Other leases were rejected and other owned sites were sold individually, so former 99 Cents Only buildings now range from re-tenanted stores with a new lease to vacant boxes.
Underwriting a Former 99 Cents Only Property
Demand for a former 99 Cents Only property depends on the building, not the old brand. Each asset needs its own analysis:
- Who the tenant is now: if the lease was assigned, confirm the assignee entity, any guarantor and the remaining term. Dollar Tree assumed leases directly; other sites have new tenants or none.
- Rent level: compare the current rent with market rent for a 15,000 to 25,000 square foot box in that location. A rent reset or concessions on re-leasing lower value.
- Re-use: grocery-oriented buildings with refrigeration can suit discount, grocery and specialty grocery users; other users may need the space divided.
- Vacancy costs: for a vacant building, budget taxes, insurance, maintenance and leasing costs until a new tenant pays rent.
| Possible replacement user | Notes | Credit |
|---|---|---|
| Dollar Tree | Assumed most of the leases it designated | BBB |
| Dollar General | Store formats vary; confirm the building fits its current format | BBB/Baa3 |
| Ollie’s Bargain Outlet | Bought ten Texas locations | Not rated |
| Grocery and specialty grocery | Can use existing refrigeration | Varies; check the operator and any guarantor |
| Medical, fitness or service users | Often need the space divided | Varies; check the operator and any guarantor |
Ratings come from our tenant ratings database, which records the agency source and date for each rating. Compare any replacement tenant against live NNN cap rates before relying on a headline yield.
The Credit Warning Signs
The trouble was visible well before the filing. The company’s first-day declaration describes a highly leveraged balance sheet, including $350 million of 7.500% notes due January 15, 2026, and in September 2023 the company hired Jefferies to look for a transaction to address it. When a highly leveraged tenant fails, the landlord is left relying on the real estate, not the tenant’s credit. For more on how tenant failures affect landlords, see store closures and single-tenant retail.
Frequently Asked Questions
Did 99 Cents Only go out of business?
Yes. 99 Cents Only Stores filed Chapter 11 on April 7, 2024 and closed all 371 stores. The bankruptcy court confirmed the liquidating plan on January 24, 2025, and it became effective January 31, 2025. The company no longer operates stores.
Where did 99 Cents Only Stores operate?
At its filing it had 371 stores: 265 in California, 46 in Texas, 39 in Arizona and 21 in Nevada, plus five distribution centers near Los Angeles and in Katy, Texas.
Who bought 99 Cents Only Stores locations?
Dollar Tree acquired designation rights for up to 170 leases and secured 164 of them, nearly all of which reopened as Dollar Tree stores. Ollie’s Bargain Outlet bought ten Texas locations, three owned and seven leased, for about $14.6 million. Other sites were sold or re-leased individually.
Is a former 99 Cents Only property a good NNN investment?
It depends on the property. The value now rests on the current tenant’s credit and lease, the rent compared with market rent, and how easily the building can be re-leased. Evaluate each property on its own.
Own a Former 99 Cents Only Property?
Whether your building has been re-leased, is being converted or is still vacant, we can review the current lease and tenant credit and compare pricing with current listings. If you plan to sell and buy a replacement property in a 1031 exchange, tell us your deadlines so we can plan around them.
Related NNN Tenants
Sources: Declaration of Christopher J. Wells in support of first-day motions (D.I. 18, April 8, 2024) and Notice of Effective Date (D.I. 1776, January 31, 2025), In re Number Holdings, Inc., Case No. 24‑10719 (Bankr. D. Del.); Dollar Tree Form 10‑Q for the quarter ended August 3, 2024 and Form 10‑K for the fiscal year ended February 1, 2025; Ollie’s Bargain Outlet first-quarter fiscal 2024 earnings release and Form 10‑Q for the quarter ended August 3, 2024.
