Discount chain Bonus Stores to close 214 units
Saturday August 9, 2008




Discount chain Bonus Stores to close 214 units

Bonus Stores, a discount store chain that operates the Bonus Stores and Bill’s Dollar Store names, is closing 214 units. The Columbia, Miss.–based company, whose stores are located mainly in the Southeast, will be left with 97 units. Stores will be shut in Alabama, Arkansas, Florida, Georgia, Kansas, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee and Texas, and the company will exit South Carolina altogether. About $35 million in inventory is being liquidated. The closure announcement follows Bonus Stores' Chapter 11 bankruptcy filing last month. At the time, President and CEO Jack Koegel said: "This action will improve our distribution model. As we reduce the span of transportation to a tighter geographic area, the company will significantly reduce its store delivery and operational costs." According to a news release on Bonus Stores’ Web site, retail chains Dollar General, Duckwall-Alco, Family Dollar, Freds and Variety Wholesale are vying for some of the vacated units. Michael Baker, a retail analyst at Deutsche Bank’s Boston office who covers dollar-store chains, confirms that such retailers are interested. "I’m sure there’s a mix in the quality of spaces in terms of real estate," he said. "But I’m sure the dollar guys would take a look." Though Bonus Stores is having trouble, the dollar-store sector of the retail industry has been strong as a whole, Baker says. The chain's stores, which average 9,000 square feet, are in strip centers and stand-alone locations. Among its best-selling products are household cleaning supplies, health and beauty aids, and food.