99 Cents Only Stores to Close Doors

In a statement, 99 Cents Only Stores LLC, often simply referred to as “99 Cents,” disclosed its plans to gradually shut down its business operations. The decision comes after the company engaged in discussions and entered into an agreement with Hilco Global, a reputable firm specializing in asset disposition. Under the terms of the agreement, all merchandise currently owned by the company will undergo liquidation, and various fixtures, furnishings, and equipment across its 371 store locations will be disposed of. The liquidation sales are slated to kick off on April 5, 2024.

Managing the sale of the company’s real estate assets, both owned and leased, in key states like Arizona, California, Nevada, and Texas is Hilco Real Estate (HRE). To navigate through this process, 99 Cents has appointed Chris Wells, a managing director at Alvarez & Marsal, as the chief restructuring officer. The current interim chief executive officer, Mike Simoncic, is set to step down.

“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” Simoncic said. He cited enduring challenges within the retail sector, including the profound impact of the COVID-19 pandemic, evolving consumer preferences, heightened levels of shrinkage, persistent inflation, and broader economic headwinds. Despite rigorous evaluation and exploration of various alternatives, the company concluded that a systematic wind-down was the most viable approach to extract maximum value from its assets.

Established in 1982, 99 Cents Only Stores LLC currently operates close to 371 stores situated across California, Texas, Arizona, and Nevada. The company has been known for its diverse range of affordably priced merchandise and attractive seasonal offerings.

The decision to wind down operations reflects a somber acknowledgment of the challenging retail landscape and its implications for the company’s sustainability. As the process unfolds, the company extends its gratitude to its dedicated workforce, loyal customers, valued partners, and supportive communities who have been integral to its journey spanning decades.