Feb. 4--99 Cents Only Stores has suspended its plan to exit the Texas market and will instead close one-third of its 48 stores in the state.

The California-based chain said its board decided to re-evaluate its Texas operations in light of a significant improvement in January sales results. Management also believes it stands to benefit from a recessionary economy as consumers look for bargains.

Last September, the company said it planned to leave Texas, saying its stores here were unprofitable. It postponed that decision when 99 Cents Only founder and chairman David Gold tried to buy the Texas stores.

Most of the company's Texas stores are in the Houston area. Thirteen are in North Texas, including Colleyville, Dallas, Euless, Fort Worth, Garland, Irving, Lewisville, North Richland Hills and Plano.

Company officials weren't available Wednesday to say which locations are closing by the end of March.

Mr. Gold has been involved in trying to improve Texas stores and will continue to oversee operations in the state. The board plans to review its Texas decision again later this year.

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