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99 Cents Only Stores Closing All 371 Locations, Citing ‘Inflationary Pressures’
All 371 locations of the 99 Cents Only stores are shutting down, with company executives blaming the “difficult” decision on such causes as “inflationary pressures.”
The company, which opened its first location in 1982, boasts of having the “lowest price guaranteed” on its website. That claim is soon to be no more, with the operators announcing Thursday that liquidation sales will begin Friday.
An official press release said an “orderly wind-down of its business operations” is starting after entering a plea agreement with Hilco Global “to, among other things, liquidate all merchandise owned by the Company and dispose of certain fixtures, furnishings, and equipment at the Company’s stores.”
The hundreds of stores will begin selling all of their remaining items and equipment before the real estate itself is sold by Hilco Real Estate.
The company’s locations span across Arizona, California, Nevada, and Texas.
CEO Mike Simoncic also announced he will step down.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said Simoncic, who continued on to explain the reasons behind the shut-down:
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. We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades.
The company stated that they engaged in an “extensive analysis of all available and credible alternatives to identify a solution that would allow the business to continue” with financial and legal advisers but found nothing.
“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 mass closures come soon after Dollar Tree announced that about 1,000 of its stores are scheduled to be closed after “botched” business decisions and a “surprise fourth-quarter loss.”
The locations to be shut down include approximately 970 Family Dollar stores, which Dollar Tree acquired in 2015, and 30 Dollar Tree stores to follow in the coming years.
Read the full article here
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