Economic Woes Force Chain Store to Shut Down Nationwide

Clear Facts

• 99 Cents Only Stores, a retail chain headquartered in California, has announced the closure of all 371 of its stores in response to economic pressures brought on by inflation and other economic challenges.
• Interim CEO Mike Simoncic attributes the closures to the effects of the COVID-19 pandemic, changes in consumer demand, shrink, persistent inflationary pressures, and various macroeconomic difficulties.
• The company plans to collaborate with Hilco Global to liquidate its merchandise, in addition to other equipment and furnishings from the stores.

The popular discount store 99 Cents Only Stores has recently made public its decision to shut down all its 371 outlets. This news was met with surprise, given the chain has been in operation since 1982 and has stores across Arizona, California, Nevada, and Texas.

Mike Simoncic, who presently serves as the Interim Chief Executive Officer of 99 Cents, identified various factors leading to this significant decision. Among them were the ongoing pandemic and a struggling economy.

“This was an extremely difficult decision and not the outcome we anticipated or desired,” Simoncic revealed. “Regrettably, the past few years have posed significant and enduring challenges in the retail environment, including the unparalleled impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures, and other macroeconomic obstacles, all of which have severely impeded the Company’s ability to operate.”

In the following months, 99 Cents Only Stores plans to partner with Hilco Global for the liquidation of its goods and other store assets.

“99 Cents Only Stores, along with its financial and legal advisors, conducted a thorough analysis to identify a solution that would allow the business to continue,” the company expressed. “After months of actively exploring these options, the company ultimately determined that an orderly wind-down was necessary and the most effective way to maximize the value of 99 Cents Only Stores’ assets.”

The company, once a dominant player in the extreme value retail sector in the Western United States, offered a broad range of products including budget-friendly produce, household items, and office supplies, among others. With the impending closure, the future of approximately 17,000 employees remains uncertain.

“We deeply value the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades,” Simoncic acknowledged.

It’s worth noting, retailers in California have faced increasing difficulties in recent years due to the repercussions of COVID restrictions, widespread shoplifting in urban areas, and inflation, making the retail environment increasingly challenging.

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