99 Cents Only Stores, a discount retail chain that has been in business for over four decades, announced on Thursday that it will be closing all 371 of its locations.
The decision comes after an extensive analysis conducted by the company’s financial and legal advisors, which ultimately determined that an orderly wind-down was the best course of action to maximize the value of its assets.
Founded in 1982, 99 Cents Only Stores has been a go-to destination for budget-conscious shoppers seeking a wide variety of products at affordable prices.
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However, the company has faced numerous challenges in recent years, which have significantly impacted its ability to operate effectively.
Mike Simoncic, the interim CEO of 99 Cents, cited several factors that contributed to the decision to close, including “the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, and rising levels of shrink.”
99 CENTS ONLY CLOSING: All 371 store locations, including those in Texas, are set to shut down. Liquidation sales begin Friday. https://t.co/wo1TdC28oN
— KHOU 11 News Houston (@KHOU) April 5, 2024
In his statement, Simoncic acknowledged the difficult nature of the decision, saying, “This was an extremely difficult decision and is not the outcome we expected or hoped to achieve.” He also expressed gratitude to the company’s dedicated employees, customers, partners, and communities who have supported 99 Cents Only Stores for decades.
To facilitate the liquidation process, 99 Cents Only Stores has partnered with Hilco Global, a financial services firm that specializes in asset disposition. The liquidation sales are set to begin on April 5 and will be carried out at all 371 locations.
As part of the restructuring process, Simoncic will step down from his role, and Chris Wells, managing director at Alvarez & Marsal, will take over as chief restructuring officer.
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In March, Dollar Tree, another large discount retailer, announced plans to close approximately 600 Family Dollar stores in the first half of fiscal year 2024, as well as an additional 370 Family Dollar and Dollar Tree stores at the end of their respective lease terms.
