David Paul Morris/Bloomberg/Getty Images
A 99 Cents Only Store sign is displayed on a store facade on Monday, August 22, 2011 in Oakland, California, United States.
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CNN
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99 Cents Only Stores, a discount chain with locations in California, Texas, Arizona and Nevada, announced it is winding down its operations, according to a company press release Thursday.
Like many retailers coming out of the pandemic, the West Coast chain is struggling with rising costs and shrinkage, meaning more product lost to customer error, breakage, internal losses and shoplifting.
“This was a very difficult decision and not the outcome we expected or hoped to achieve,” 99 Cents interim CEO Mike Simoncic said in a release. “Unfortunately, the last few years have seen significant changes in the retail environment, including the unprecedented impact of the COVID-19 pandemic, changes in consumer demand, increasing levels of contraction, sustained inflationary pressures, and other macroeconomic headwinds. and has posed persistent challenges, severely disrupting the company’s ability to operate.”
The company is An agreement with financial services company Hilco Global to liquidate its products. Additionally, the company plans to work with the company to remove fixtures, furniture, and equipment from 371 stores.
Hilco Real Estate will manage sales for stores in four states.
The company said Simončić has resigned from his position. Chris Wells will become chief restructuring officer.
Bloomberg reported last week that 99 Cent was considering filing for bankruptcy.
