99 Cents Only Stores has announced its decision to close all 371 of its stores and initiate the process of winding down its business operations, marking the end of a legacy that spans more than four decades.
Interim Chief Executive Mike Simoncic expressed the difficulty of the decision, stating, “This was an extremely difficult decision and is not the outcome we expected or hoped to achieve.” He attributed the closure to various factors, including the “unprecedented impact” of the COVID-19 pandemic, changing consumer preferences, inflationary pressures, and significant inventory loss due to theft.
With locations in California, Arizona, Nevada, and Texas, 99 Cents Only Stores employs approximately 14,000 workers. The company, which is privately held, has enlisted Hilco Global to oversee the liquidation of all merchandise and the disposal of fixtures, furnishings, and equipment at its stores. Sales are set to begin on Friday.
This decision reflects a broader trend of discount chains grappling with challenges amid the current economic landscape.