One of the nation’s prominent dollar store chains is undergoing significant downsizing due to financial challenges.
Beginning on Friday, 99 Cents Only shops will close the vast majority of its hundreds of locations in a move towards complete liquidation.
In a press release, the company stated, “99 Cents Only Stores, together with its financial and legal advisors, engaged in an extensive analysis of all available and credible alternatives to identify a solution that would allow the business to continue.”
“After months of actively exploring these alternatives, the company ultimately concluded that an orderly wind-down was necessary to maximize the value of 99 Cents Only Stores’ assets.”
Currently, 99 Cents Only LLC operates approximately 371 locations, all of which will undergo merchandise and real estate liquidation.
Mike Simoncic, the company’s Interim Chief Executive Officer of 99 Cents Only Stores, expressed the difficulty of the decision, stating,
“Unfortunately, the last several years have presented significant and lasting challenges in the retail environment, including the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures, and other macroeconomic headwinds, all of which have greatly hindered the Company’s ability to operate.”
As the liquidation process begins, Simoncic will step down from his position in the coming weeks.
Established in 1982 and headquartered in Commerce, California, the dollar store chain is renowned for its strict 99 cent price tags on a diverse range of goods.
