Dirt Cheap files for bankruptcy; Plans to close stores

Channel Control Merchants, the parent company of Dirt Cheap and Treasure Hunt and headquartered in Hattiesburg, Mississippi, where the company was originally incorporated, filed for Chapter 11 bankruptcy in Delaware on October 10.

The company, registered as HDC Holdings II, LLC, which includes Dirt Cheap, Treasure Hunt and Dirt Cheap Building Supplies, according to court documents, plans to close all of its stores to pay off its debts.

With locations throughout Louisiana, Mississippi, Alabama, Arkansas, Florida, Texas, Georgia and Tennessee, the company has built its reputation on the dreams of bargain hunters by offering hand-me-downs, leading private label and name-brand items at 40-90% off regular retail prices.

Dirt Cheap is considered a secondary market retailer, meaning they purchase items from traditional retailers who have had difficulty selling those items through normal distribution channels. This could be due to purchasing errors, competition or a weakened economy.

Since the date of the final court hearing is November 7th, it is expected that all shops will be closed by the end of the year. Some “store closing sales” are already being advertised on the company’s official Facebook page.