The retail chain 99 Cents Only Stores, known for its budget-friendly offerings across Arizona, California, Nevada, and Texas, has announced the closure of all 371 of its locations. The decision, as stated by Interim Chief Executive Officer Mike Simoncic, comes in the wake of persistent economic challenges and inflationary pressures.
As 99 Cents Only stores close across the nation, the city of LA is pledging to give resources to the chain's workers impacted by the closures. https://t.co/fN0oTPnbHC
— NBC 7 San Diego (@nbcsandiego) April 14, 2024
Simoncic cited a range of factors contributing to the company’s struggles, including the long-term impacts of the COVID-19 pandemic, shifting consumer demands, increasing operational costs, and a tough retail environment. “This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” he remarked.
The company has decided to engage Hilco Global for the liquidation of its merchandise and store fixtures. The process follows an exhaustive review by the company, alongside financial and legal advisors, of all possible alternatives to sustain operations. “Unfortunately, the last several years have presented significant and lasting challenges that have greatly hindered the Company’s ability to operate,” Simoncic added.
99 Cents Only Stores, once a prominent player in the extreme value retail sector in the Western United States, offered a variety of low-priced items ranging from groceries to office supplies. The impending closures will impact approximately 17,000 employees, risking widespread unemployment among its workforce.
As the stores prepare to shut down, Simoncic extended his gratitude towards the company’s employees, customers, partners, and the communities that have supported the chain over the years, acknowledging their contributions to the brand’s long-standing presence in the retail market.
