The discount retail sector has contracted over the last year as retailers closed underperforming locations or filed bankruptcy to liquidate stores.
The retail chains blamed the fallout from the Covid-19 pandemic, rising interest rates, and inflation that has raised the cost of doing business for causing their troubles.
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Discount retailer 99 Cents Only filed for Chapter 11 bankruptcy on April 8, 2024, with plans to reorganize as a going concern.
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The retail chain sought a buyer for its assets as part of its reorganization but eventually had to liquidate and close down all 371 locations in Arizona, California, Nevada, and Texas after it could not find a buyer.
Dollar Tree will close 1,000 storesÂ
A much bigger discount variety store chain Dollar Tree (DLTR)  in May 2024 said it would close 1,000 stores over the next several years, consisting of 970 of its Family Dollar stores and 30 Dollar Tree locations. Dollar Tree did not file for bankruptcy.
Big Lots was the most significant discount retailer to file for Chapter 11 bankruptcy and close stores. The company filed for bankruptcy on Sept. 9, 2024, seeking to sell its assets to stalking-horse bidder Nexus Capital Management for a $760 million bid, which fell through.
The huge retail chain on Dec. 19 said that it would begin going-out-of-business sales at all of its stores, which numbered 1,392 in 48 states when it filed for bankruptcy. But days later, Big Lots agreed to sell its assets to Gordon Brothers Retail Partners which would allow for the transfer of stores, distribution centers, and intellectual property to other retailers and companies.
Gordon Brothers subsequently reached an agreement with Variety Wholesalers Inc. to purchase 200 to 400 Big Lots stores and operate them under the Big Lots brand, along with up to two distribution centers. Hundreds of Big Lots stores that are not sold will permanently close.
Bargain Hunt is liquidating all stores in bankruptcy.
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Discount retailer Bargain Hunt liquidates all stores
Finally, discount retail chain Bargain Hunt on Feb. 5 launched going-out-of-business sales at all 92 of its locations in 10 Southern and Midwestern states after its parent company filed for bankruptcy.
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Bargain Hunt parent Essex Technology Group LLC filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Middle District of Tennessee on Feb. 3, listing $10 million to $50 million in assets and $50 million to $100 million in liabilities, according to its petition.
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Funds will be available to distribute to unsecured creditors, the petition said.
The Antioch, Tenn.-based discount retailer has hired Hilco Consumer-Retail and Gordon Brothers to conduct the going-out-of-business sales to liquidate all inventory, including men’s and women’s apparel and shoes, toys, lawn & garden goods, automotive products, pet goods, and home decor at up to 40% discounts off the lowest ticketed prices storewide, according to a Hilco statement.
Bargain Hunt is also liquidating store fixtures and equipment.
All stores are set to close by the end of February 2025, Hilco’s statement said.
Top retail bankruptcy filings in 2024
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Product discounts are valid only in stores and all sales are final on purchases made on or after Jan. 30, 2025. Returns are allowed on purchases before Jan. 30, only until Feb. 14, according to Bargain Hunt’s website.
Gift cards and the store’s Crazy Clover Rewards may be redeemed through Feb. 14.
Bargain Hunt’s stores are located in Alabama, Arkansas, Georgia, Indiana, Kentucky, Mississippi, North Carolina, Ohio, South Carolina, and Tennessee.Â
The retailer was founded in 2004 as an extreme-value retail chain offering quality name-brand merchandise at a 30% to 90% discount from the nation’s largest retailers and manufacturers.
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