Pennsylvania’s Harrisburg At the bankruptcy court, Ollie’s Bargain Outlets is hunting for deals.
The closeout retailer declared that it had won seven former Big Lots store leases through a bankruptcy sale process. 143 Big Lots shops were closed in the initial round of store closures, including the seven stores that were up for auction during a bankruptcy auction.
The United States Bankruptcy Court for the District of Delaware has already granted final clearance to six out of the seven locations after they successfully completed the sale hearing procedure. Customary closing requirements and ultimate bankruptcy court permission are prerequisites for the surviving store.
The CEO of Ollie, John Swygert, stated that the locations of the units are in the Midwest, “an area where we have tremendous growth potential and a brand-new distribution center.”
Ollie’s withheld the purchasing price from them.
For the shop, this is the second acquisition of that kind in 2024. During a bankruptcy auction in May of last year, Ollie’s paid $14.6 in cash to acquire 11 defunct 99 Cents locations. All of the old 99 Cents locations are found in Texas.
To enhance new store productivity and minimize pre-opening expenses, the business will reschedule other scheduled new store openings in the pipeline and give priority to opening the purchased Big Lots shops. In the fiscal year 2024, Ollie’s still intends to close two locations and open 50 new ones.
At the moment, Ollie’s runs 541 locations in 31 states.
In the second quarter that concluded on August 3, Ollie’s net sales increased by 12.4% to $578.4. The expansion in new shop units and the 5.8% increase in comp sales were the reasons for the gain. Operating income reached $60.8 million, a 15.6% increase.
