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One of the country’s major dollar store chains has closed most of its stores due to a financial crisis.
99 Cents Only stores will begin closing hundreds of stores starting Friday as the company moves toward complete liquidation.
“99 Cents Only Stores, in collaboration with its financial and legal advisors, conducted an extensive analysis of all available credible alternatives and identified a solution that would allow for business continuity,” the company said in a press release. ” he said.
“After actively pursuing these alternatives for several months, we ultimately determined that an orderly winddown was necessary and the best way to maximize the value of our 99 Cents Only Store assets. Did.”
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The 99 Cents Only store is located at 6121 Wilshire Blvd. We sell everything for 99 cents. (Gary Friedman/Los Angeles Times via Getty Images/Getty Images)
99 Cents Only LLC currently has approximately 371 locations, all of which are set up for merchandise and real estate liquidations.
“This was a very difficult decision and not the outcome we expected or hoped to achieve,” said Mike Simoncic, interim chief executive officer of 99 Cents Only Stores. Ta.
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A shopper carries shopping bags after leaving a 99 Cents Only store on August 22, 2011 in Oakland, California. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
He added: “Unfortunately, the past few years have been marked by the unprecedented impact of the COVID-19 pandemic, changes in consumer demand, rising levels of contraction, sustained inflationary pressures, and other macroeconomic headwinds. have presented significant and persistent challenges in the retail environment, which have significantly hampered our ability to operate.”
The company also announced that Simončić will resign in the coming weeks as liquidation begins.
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On Monday, August 22, 2011, the 99 Cents Only Store logo appears in shopping carts at stores in Oakland, California. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
99 Cents Only LLC operates in multiple states including California, Texas, Arizona, and Nevada.
This dollar store chain was founded in 1982 and is based in Commerce, California. This place is known for its strict 99 cent price tags on various items.
No exact timeline for winding down operations has been given.
