All 371 99 Cents Only stores are closed, with company executives citing “difficult” decisions including “inflationary pressures.”
The company, which opened its first store in 1982, prides itself on its “Best Price Guarantee.” Website. That claim will soon disappear, and the operator announced Thursday that liquidation sales would begin on Friday.
official press release After entering into a plea agreement with Hilco Global, the company has begun an “orderly winddown” of “liquidating all merchandise owned by the company and disposing of certain fixtures, furniture, and equipment in its stores.” the company said. ”
Hundreds of stores will begin selling remaining merchandise and equipment before the property itself is sold by Hilco Real Estate.
The company’s locations span Arizona, California, Nevada, and Texas.
CEO Mike Simoncic also announced his resignation.
“This was a very difficult decision and not the result we expected or wanted to achieve,” Simoncic said, going on to explain the reason for the closure.
Unfortunately, in recent years the retail environment has experienced significant and We are exposed to persistent challenges, all of which are having a major impact. The company’s ability to operate was impaired. We are deeply grateful to our dedicated employees, customers, partners, and community who have collectively supported 99 Cents Only Stores for decades.
The company said it, along with its financial and legal advisors, had “extensively analyzed all available credible alternatives to identify a solution that would allow for the continuation of operations” but found none.
“After actively pursuing these alternatives for several months, we ultimately determined that an orderly downsizing was necessary and the best way to maximize the value of our 99 Cents Only Store assets. did.”
Mass closures come soon after Dollar Tree announced Approximately 1,000 stores are scheduled to close due to operational “failures” and an “unexpected fourth quarter loss.”
The stores to be closed include about 970 Family Dollar stores that Dollar Tree acquired in 2015, as well as 30 Dollar Tree stores that will follow over the next few years.
