Harrisburg, Pa. – Ollie’s Bargain Outlets is doing some bargain hunting at the bankruptcy court.
The closeout retailer announced that it was the winning bidder in a bankruptcy sale process to acquire seven former Big Lots store leases. The seven stores were part of a bankruptcy auction for the first wave of Big Lots store closures, which included 143 stores.
Six of the seven stores have already completed the sale hearing process and received final approval from the United States Bankruptcy Court for the District of Delaware. The remaining one store is subject to final bankruptcy court approval and customary closing conditions.
The units are located in the Midwest, “an area where we have tremendous growth potential and a brand-new distribution center,” said John Swygert, Ollie’s CEO.
Ollie’s did not disclose the purchase price.
This is the second such acquisition for the retail in 2024. Last May, Ollie’s purchased 11 former 99 Cents stores for $14.6 in cash as part of a bankruptcy auction. The former 99 Cents stores are all located in Texas.
The company will prioritize the opening of the acquired Big Lots stores and reshuffle other planned new store openings in the pipeline to maximize new store productivity and minimize pre-opening expenses. Ollie’s still plans to open 50 new stores and close two units in fiscal 2024.
Ollie’s currently operates 541 stores in 31 states.
During the recent second quarter, ended Aug. 3, Ollie’s net sales climbed 12.4% to $578.4. The increase resulted from new store unit growth and a comp sales increase of 5.8%. Operating income jumped 15.6% to $60.8 million.
See also:
- How Ollie’s Bargain Outlets slammed it out of the park during Q1
- Changes at the top as Ollie’s announces CEO succession plan