The discount retail chain 99 Cents Only Store LLC is considering a bankruptcy filing.
According to a Bloomberg report, the company has been unable to offload assets and is weighing either bankruptcy, debt restructuring or an out-of-court agreement. The company is in discussions with Jefferies Financial Group and the law firm Milbank, with a possible Chapter 11 bankruptcy announcing coming as soon as next month.
99 Cents Only Store operates over 370 stores across California, Arizona, Nevada and Texas. Last year, the company monetized assets to boost free cash flow, including a $190 million sale-leaseback agreement for its 882,000-square-foot warehouse in Los Angeles.
99 Cents Only Store is the latest discount retailer to face financial tumult. Last month, discount retailer Dollar Tree Inc. announced plans to close 1,000 stores operating under the Dollar Tree and Family Dollar brands.
Photo: Chiara Coetzee / Flickr Creative Commons
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