99 Cents Only Stores to Close 371 Retail Locations
By Greg Cornfield April 5, 2024 10:00 am
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It’s the end of an era in the West Coast discount retail world.
After more than four decades, 99 Cents Only Stores announced Thursday it would close all 371 of its retail locations as it starts an “orderly wind-down of its business operations.” The Los Angeles County-based company will also need to unload its vast industrial and distribution facilities.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” Mike Simoncic, 99 Cents’ interim CEO, said in a statement. “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.”
99 Cents Only did not return requests for additional details on the size of its real estate portfolio. Hilco Global is working with the company to liquidate all merchandise, and Hilco Real Estate will manage the sale of the real estate assets, both owned and leased, in Arizona, California, Nevada and Texas.
The announcement explained that the company spent months examining “all available and credible alternatives” to save the business. The L.A. Times first reported the plans to close. Bloomberg reported last week that 99 Cents Only was considering filing for bankruptcy.
To a varying degree, the closure adds to other larger big-name, brick-and-mortar-based retail chain bankruptcies or store closures that leave empty storefronts in their wake, including Rite Aid, Macy’s and Bed Bath & Beyond.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
