Ollie's could take over at least 5 Toys R Us stores
Ollie's Bargain Outlet is on the verge of scooping up former Toys R Us stores as part of the company's ongoing expansion effort.
The Dauphin County-based deep-discount retailer has been named the successful bidder on five Toys R Us store leases that were put up for auction on Monday in New York City as part of the toy retailer's bankruptcy proceedings. The stores are in Maryland, Mississippi, Texas and Virginia.
Ollie's also has been declared the backup bidder on three other store leases in Maryland, Oklahoma and Texas, should the landlords who successfully bid on those stores fail to consummate their deals.
A June 25 hearing will be held to get a judge's approval on store lease deals for at least 53 properties, according to a bankruptcy court filing Wednesday. Winning bidders approved by the court take over leases as is.
Terms of the pending deals were not disclosed.
Entering the auction, more than 100 qualified bids were received for 68 properties, most from landlords looking to control the next ten into the space. Ollie's, which just opened its 280th store, was a listed bidder on 12 Toys R Us stores.
Projections call for the chain with the "good stuff cheap" slogan eventually to reach 950 stores across the country.
Ollie's declined to comment earlier this week on the Toys R Us auction. The company declined comment again Thursday, citing a desire to wait until after court approval of the deals.
The auction remains open for other stores, according to the court filing on Wednesday. Smith Land & Improvement Corp., the landlord for a Toys R Us store on the Carlisle Pike in Hampden Township, was the lone bidder on its property. But that Cumberland County store wasn't included in the successful bidders list on Wednesday.
New York-based A&G Realty Partners LLC was hired to start selling off real estate assets for Toys R Us. Auctions will continue to be held to sell off other Toys R Us properties. Ollie's expects to be among those on the hunt for real estate deals.
A&G also is marketing stores for bankrupt Bon-Ton Stores Inc.
Ollie's on Wednesday was declared the successful bidder for five stores:
- Hattiesburg, Mississippi
- Glen Burnie, Maryland
- Hagerstown, Maryland
- Mesquite, Texas
- Roanoke, Virginia
The company is the backup bidder on three stores:
- Sugarland, Texas
- Bel Air, Maryland
- Oklahoma City, Oklahoma