99 Cents Only Stores Shuts Down Business Operation

99 Cents Only Stores LLC announced its decision to end its discount retail chain operations and close its 371 stores. 

Founded 42 years ago, the retailer reported that financial difficulties due to the COVID-19 pandemic, persistent inflation, and changes in consumer demand, among other factors, led them to end the business.

According to a press release, the company has agreed with Hilco Global to, among other things, liquidate all merchandise owned by 99 Cents Only Stores and dispose of certain fixtures, furnishings, and equipment at the company’s stores.

Sales under this agreement are expected to begin April 5, 2024, and will be carried out at all 371 of the company’s store locations.

Hilco Real Estate (HRE) manages the sale of the company’s assets, both owned and leased, in Arizona, California, Nevada, and Texas.

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To help facilitate the wind-down, the company has appointed Chris Wells, Managing Director at Alvarez & Marsal, as Chief Restructuring Officer.

Mike Simoncic, Interim Chief Executive Officer of 99 Cents Only Stores and Managing Director at Alvarez & Marsal, will step down.

“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said Simoncic. “Unfortunately, the last several years have presented significant and lasting challenges in the retail environment, including the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures, and other macroeconomic headwinds, all of which have greatly hindered the company’s ability to operate. We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades.”

99 Cents Only Stores and its financial and legal advisors engaged in an extensive analysis of all available and credible alternatives to identify a solution that would allow the business to continue. Following months of actively pursuing these alternatives, the company ultimately determined that an orderly wind-down was necessary and the best way to maximize the value of 99 Cents Only Stores’ assets.

Founded in 1982 in Los Angeles, CA, 99 Cents Only Stores LLC operates 371 stores in California, Texas, Arizona, and Nevada and has two distribution centers. The discount retailer offers a broad assortment of name brands, other priced merchandise, and seasonal product offerings.