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99 Cents Only Stores Announces Business Wind-down and Liquidation Plans
CITY OF COMMERCE, Calif., April 4, 2024 — 99 Cents Only Stores LLC (“99 Cents,” “99 Cents Only Stores” or the “Company”) today announced plans to commence an orderly wind-down of its business operations.
The Company has entered into an agreement with Hilco Global to, among other things, liquidate all merchandise owned by the Company 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) 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 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, together with 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.
About 99 Cents Only Stores:
Founded in 1982, 99 Cents Only Stores LLC currently operates nearly 371 stores located in California, Texas, Arizona and Nevada. 99 Cents Only Stores LLC offers a broad assortment of name brand and other attractively priced merchandise and compelling seasonal product offerings. For more information, visit http://www.99only.com/.
SOURCES: 99 Cents Only Stores LLC
Photo credit to: 99 Cents Only Stores
Editor’s Note: It’s disheartening to read about the closure of 99 Cents Only Stores, which have been around for over four decades. The surge in prices for goods and services, exacerbated by the challenges of COVID-19, has indeed been concerning. High demand often drives prices up, prompting the need to explore strategies for maintaining affordability. The drastic increase in rent prices, exemplified by the rise from $800 to over $1800 for a one-bedroom apartment since 2016, reflects a concerning trend. It’s crucial for those with wealth to prioritize affordability and resist greed. Nevertheless, we extend our best wishes to 99 Cents Only Stores as they navigate this challenging period.
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