99 Cents Only Stores says it’s shutting down its business after it could not find a solution that would allow it to continue operating.
“Unfortunately, the last several years have presented significant and lasting challenges in the retail environment,” Mike Simoncic, the interim CEO of 99 Cents Only Stores, said in a statement Thursday. Simoncic is also stepping down.
Simoncic said the decision was due to various factors including the COVID-19 pandemic, shifting consumer demand, and persistent inflationary pressures.
The discount retailer has entered into an agreement with financial services firm Hilco Global, which will help the company liquidate all of its merchandise, including disposing of certain fixtures, furnishings, and equipment. Those sales are expected to begin on April 5. Hilco is also managing the sale of the company’s real estate assets.
California-based 99 Cents, which offered groceries, household supplies, beauty products, and even beer and wine, will close about 371 of its stores across California, Texas, Arizona, and Nevada. The store employed more than 10,000 people, according to LinkedIn.
99 Cents’ departure from the retail ecosystem comes at time when other discount retailers like Dollar Tree also move to close locations. In March, Dollar Tree said it would close about 1,000 of its Family Dollar stores, after it lost $1.7 billion in its fourth quarter.
More retail news
Home Depot’s $18 billion roofing company deal ‘is opening up a new customer for us,’ CFO says
Levi Strauss stock is popping because people can’t stop buying baggy jeans
Foot Locker is taking a page out of Adidas’ playbook
Ulta Beauty knows it needs new ideas to compete with Sephora, CEO says