99 Cents Only to close down all stores
99 Cents Only Stores will be closing all of its stores as the company announced plans to wind down its business operations. The company, which was founded in 1982, operates nearly 317 stores across… 99 Cents Only Stores, a discount retailer founded in 1982, will close all of its stores due to financial difficulties, changing consumer demand and inflation. The company operates nearly 317 stores across California, Texas, Arizona and Nevada. The decision was made by Interim Chief Executive Officer Mike Simoncic, who stated that the company faced significant challenges including the impact of the COVID-19 pandemic, shifting consumer demand, persistent inflationary pressures, and macroeconomic headwinds. The retailer has agreed to liquidate its merchandise and dispose of certain furnishings, fixtures and equipment at the stores. An official closing date has yet to be announced.
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99 Cents Only Stores will be closing all of its stores as the company announced plans to wind down its business operations.
The company, which was founded in 1982, operates nearly 317 stores across California, Texas, Arizona and Nevada.
On Thursday, the company officially announced plans to close down, citing financial difficulties stemming from the pandemic, changing consumer demand and inflation.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said Mike Simoncic, Interim Chief Executive Officer. “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.”
The popular discount stores were famous for their wide variety of items at reasonable prices including household goods, fresh groceries, snacks, office supplies, health and beauty products, party supplies and more.
Employing around 14,000 workers, the company said it reached an agreement with Hilco Global to liquidate all of its merchandise and dispose of certain furnishings, fixtures and equipment at the stores.
“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,” the company said. “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.”
Founded in Los Angeles in 1982 by David Gold, 99 Cents Only “pioneered the single-price retail concept,” according to the Los Angeles Times.
During that era, dollar stores were seen as places that sold mostly junk or unpopular goods. However, Gold aimed to make his stores the opposite of that. He wanted the stores to offer customers good quality, useful products at an everyday price.
For most of the company’s existence, the items they sold remained at 99 cents. That only changed in 2008 when prices were forced to change due to inflation, higher minimum wages and rising food costs, according to the Times.
In 2011, the company was sold in a $1.6 billion buyout to private equity firm Ares Management and the Canada Pension Plan Investment Board.
An official closing date has yet to be announced by the company.
“We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades,” Simoncic said.