99 Cents Only Stores Announces Closure Plans

Apr 5, 2024

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CITY OF COMMERCE, Calif. – 99 Cents Only Stores has declared its intentions to initiate a phased shutdown, marking the end of an era for the discount retail chain. The decision comes amidst a backdrop of challenges, including the enduring impact of the COVID-19 pandemic and shifting consumer preferences.

Liquidation and Real Estate Disposition

The company has enlisted the services of Hilco Global to oversee the liquidation process, which involves the sale of all remaining merchandise, as well as certain fixtures and equipment across its 371 store locations. The liquidation sales are set to commence on Friday, April 5th. Additionally, Hilco Real Estate will be tasked with managing the sale of 99 Cents Only Stores’ real estate assets, encompassing properties in Arizona, California, Nevada, and Texas.

Leadership Changes

In conjunction with the wind-down, leadership changes are underway within the company. Chris Wells, a Managing Director at Alvarez & Marsal, has been appointed as the Chief Restructuring Officer. Furthermore, Mike Simoncic, who served as the Interim Chief Executive Officer, will be stepping down from his role.

A Difficult Decision

Reflecting on the announcement, Simoncic expressed the challenges that have beset the company in recent years. These challenges include the lingering effects of the pandemic, evolving consumer behavior, and economic pressures such as inflation. Despite efforts to navigate these obstacles, the company has ultimately been unable to sustain its operations effectively.

This was an extremely difficult decision and is not the outcome we expected or hoped to achieve, remarked Simoncic. We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades.

End of an Era

Founded in 1982, 99 Cents Only Stores has been a fixture in the retail landscape for over three decades. However, the decision to wind down operations underscores the formidable challenges facing brick-and-mortar retailers in an increasingly competitive and dynamic market environment.

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