Bargain store Dirt Cheap files for bankruptcy and will close all Louisiana stores

Dirt Cheap, a Mississippi-based chain of stores that sell returned and liquidated goods, has filed for bankruptcy protection and plans to close all of its locations.

The chain disclosed the plan to shut down 68 stores in documents filed with a Delaware bankruptcy court.

Dirt Cheap has 9 stores in Louisiana, according to the company website, including stores in Lafayette, Slidell, Hammond, Amite, Bogalusa, Houma, Bossier City, Monroe and Franklinton. A Zachary store recently closed.

According to Facebook, going-out-of-business sales have started at all Dirt Cheap stores. 

Dirt Cheap stocks its stores with items that were returned to retailers such as Target, Amazon and Macy’s, along with overstocked goods, seasonal merchandise and liquidations. The chain says customers can save 40% to 90% off retail prices.

The extreme discounts and changing inventory of Dirt Cheap helped the company build a following online, with shoppers discussing how to get the best deals and the tricks for finding treasures in the discombobulated clothing racks and shelves.

But even with those deep discounts, the reduced customer buying power caused by inflation took a toll on Dirt Cheap. Other discount retailers have felt the same pinch, with Big Lots, Conn’s HomePlus, Family Dollar and Dollar Tree shutting down thousands of stores nationwide in recent months.