99 Cents Only Stores to Announce Closure of All Locations
In a sudden and impactful decision, the 99 Cents Only Stores, a familiar discount retail chain, is set to close all 371 locations across California, Arizona, Nevada, and Texas. Announced by the Commerce-based operators, this move marks the end of an era for the budget-friendly stores that customers have frequented for decades. Liquidation sales are expected to commence this Friday, signaling the beginning of the end for these iconic stores.
Spanning multiple states, the closure will affect stores in prominent areas, including 10 in North Texas—Arlington, Colleyville, Dallas, Duncanville, Fort Worth, Garland, and Mesquite—and an additional 16 throughout Texas. The decision to shutter its doors reflects the culmination of numerous challenges the company has faced in recent years. “This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said interim CEO Mike Simoncic in a heartfelt statement.
The retail environment has grown increasingly difficult, with numerous hurdles impeding the ability of businesses to thrive. Simoncic points to the “unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures, and other macroeconomic headwinds” as critical factors that have made it impracticable for 99 Cents Only Stores to continue its operations.
The company has expressed its deep gratitude towards its employees, customers, partners, and the communities that have supported it over the years. It’s a heartfelt goodbye to a brand that has been a staple for budget-conscious shoppers looking for deals on everything from groceries to household items.
In an attempt to manage the liquidation process effectively, the company has teamed up with Hilco Real Estate. The partnership aims to facilitate the sale of all merchandise, as well as certain fixtures, furnishings, and equipment from the stores. This effort is seen as a way to maximize the value of the assets of 99 Cents Only Stores during this transition period.
Originally founded in 1982, the 99 Cents Only Stores have been a pivotal part of the discount retail landscape for over three decades. Despite efforts to navigate through mounting financial and operational challenges, including consultations with financial and legal advisers, the company has reached the conclusion that winding down is the most pragmatic approach. “Following months of actively pursuing these alternatives, the company ultimately determined that an orderly wind-down was necessary and the best way to maximize the value of 99 Cents Only Stores’ assets,” the company remarked in a statement.
The closure of 99 Cents Only Stores not only marks the end of an affordable shopping destination for many but also showcases the harsh realities many retail chains are facing in today’s rapidly changing economic and consumer environment. As the liquidation sales begin, it will be a time for both reflection and anticipation of what the future holds for the locations and communities affected by this significant change.
