Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) shares lost ground Tuesday, on word it was the winning bidder in a bankruptcy sale process to acquire seven former Big Lots, Inc. 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.
CEO John Swygert stated, “We are very pleased to be the winning bidder for these store locations in the initial wave of Big Lots store closures. These stores are the right size, located in good trade areas, and have served value-oriented customers for years. In addition, the majority of these stores are located in the Midwest, an area where we have tremendous growth potential and a brand-new distribution center.”
Swygert continued, “Similar to the 99 Cents Only stores that we acquired recently through a separate bankruptcy process earlier this year, we will prioritize the opening of the acquired Big Lots stores and reshuffle other planned new store openings in our existing pipeline to maximize new store productivity and minimize pre-opening expenses.”
OLLI shares handed back 83 cents to $96.37.