The discount retailer 99 Cents Only Stores LLC announced it is closing its chain of 371 stores and winding down its business operations.
The City of Commerce, California-headquartered company entered into an agreement with Hilco Global to liquidate the company’s merchandise and dispose of certain fixtures, furnishings, and equipment at the company’s stores. Sales under this agreement will begin today throughout all the store locations. Hilco Real Estate is managing the sale of the company’s real estate assets, both owned and leased, in Arizona, California, Nevada, and Texas.
The company also announced the appointment of Chris Wells, managing director at the professional services firm Alvarez & Marsal, as chief restructuring officer. Mike Simoncic, the interim CEO of 99 Cents Only Stores and managing director at Alvarez & Marsal, will step down from his position with the company.
Earlier this week, Bloomberg reported the company was exploring options including a Chapter 11 bankruptcy filing and a debt restructuring to reverse its financial problems.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said Simoncic. “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. We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades.”
Photo: Chiara Coetzee / Flickr Creative Commons
;
