99 Cents Only will be closing all of its stores as the company announced plans to wind down its business operations.
via: CBS News
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” interim company CEO Mike Simoncic said in a statement. “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.”
The move will impact all company locations in California, Arizona, Nevada and Texas. The operators are based in Commerce.
According to the company, it has partnered with Hilco Real Estate to facilitate the liquidation of all merchandise, along with “certain fixtures, furnishings and equipment at the company’s stores.”
Company officials said they conferred with financial and legal advisers in hopes of finding a way to continue operating.
“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,” according to a company statement.
The 99 Cents Only stores were founded in 1982.
