It's been a rough few months for discount retailers. Big Lots went bankrupt and is closing stores, the same is true for 99 Cents Only stores, while Family Dollar is shuttering 1,000 locations, some TJ Maxx and Marshalls stores are closing, and there are only a couple Kmarts left in the country, down from 2,000. Well now, another discount retailer has just declared bankruptcy and announced store closures.
Channel Control Merchants and their affiliates, which own dozens of Dirt Cheap, Treasure Hunt and Dirt Cheap Building Supplies stores across the country, filed for Chapter 11 and announced plans to shutter their 68 stores. Realizing the company could only operate through the end of the year without more liquidity, and with $100 to $500 million in assets and liabilities, they decided to declare bankruptcy. The Mississippi-based company explained that product issues with its foundational supplier, Target Corp, were behind the bankruptcy, along with increased costs, fewer customers shopping in brick-and-mortar stores, consumer spending habits changing, burdensome lease terms and lingering effects of Covid-19 shutdowns.
The company was founded in 1954 but was bought by a group of investors last year. The stores are able to offer discounted goods since their products are mostly excess inventory and customer returns from major retailers. Among their merchandise is clothing, footwear, toys, furniture, electronics, beauty and health products, and more. Store closing sales have already begun, with 40 to 90% off items.
They have locations in eight Southern states: Louisiana, Mississippi, Alabama, Arkansas, Florida, Texas, Georgia and Tennessee. The stores are expected to be closed for good by the end of the year.