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99 Cents Only Stores Closing All 371 Locations
Commerce, CA-based 99 Cents Only Stores LLC said Thursday afternoon it would close all 371 of its stores. The company entered into an agreement with Hilco Global to liquidate all merchandise and dispose of certain fixtures, furnishings and store equipment. Sales under this agreement are expected to begin Friday.
Hilco Real Estate is managing the sale of the company’s real estate assets, both owned and leased, in Arizona, California, Nevada and Texas. To help facilitate the wind-down, the company appointed Chris Wells, managing director at Alvarez & Marsal, as chief restructuring officer. Mike Simoncic, interim CEO 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.”
Founded in Los Angeles in 1982, 99 Cents Only Stores maintained a tradition for decades of selling TVs for 99 cents to the first few customers at each store opening. Its liquidation announcement comes a few weeks after Dollar Tree announced that it would close 970 Family Dollar stores.
Pictured: A 99 Cents Only store in North Hollywood, CA. Photo credit: Downtowngal/Wikipedia.
- ◦Sale/Acquisition
