May 26, 2024


Complete Australian News World

Only 99 cents to close stores in 4 states

Only 99 cents to close stores in 4 states

The 99 Cents Only retail chain announced Thursday that it plans to close all 371 of its stores in four states and will begin liquidation sales on Friday.

The decision to permanently close its locations was “very difficult” and “not the outcome we expected or hoped to achieve,” Mike Simoncic, the company's interim CEO, said Thursday.

The discount company was founded by Dave Gould in 1982 in Los Angeles, California, and has operated for more than four decades in California, Arizona, Nevada and Texas. But after going through difficult years during the pandemic and the recent high inflation environment, the chain said it is now undergoing a “divestiture” of its business operations.

People shop at a 99 Cent store in Santa Monica, California, on September 13, 2022. 99 Cent Only announced that it will close all 371 of its stores.

APU GOMES/AFP via Getty Images

“Unfortunately, the past 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 deflation, persistent inflationary pressures and other macroeconomic headwinds, all of which have impacted the economy.” “total”. “Significantly hampered the company's ability to operate,” Simoncic said in a statement Thursday.

“We deeply appreciate the dedicated employees, customers, partners and communities who have collectively supported 99 Cent Stores for decades.”

Newsweek I reached out to 99 Cents Only for comment via email Friday morning.

READ  New Jersey uses 3 times as much plastic after plastic ban: report

“After months of actively pursuing these alternatives, the company ultimately determined that an orderly liquidation was necessary and the best way to maximize the value of 99 Cents’ assets,” the company wrote in a statement.

Some stores will reportedly close on Friday, April 5. They will all be closed in the coming months. 99 Cents Only, based in Commerce, Calif., said it has partnered with Hilco Real Estate to liquidate all of its merchandise, including “certain fixtures, furnishings and equipment in the company's stores.”

The company currently has about 14,000 employees, according to what it reported Los Angeles Times.

The fate of just 99 cents currently hangs in the balance. Although all its stores are closed, the company said it is talking with financial and legal advisors to try to find a way to continue operating.

The chain's stores initially offered all kinds of products — from brand-name merchandise to fresh foods — for 99 cents, but were forced to raise prices in the 2000s to keep up with rising costs and inflation. Although it had previously weathered difficult times, the company's financial troubles became known in October 2023 when Fitch Ratings reported it was approaching a potential Chapter 11 bankruptcy filing.