In a surprising move, 99 Cents Only Stores LLC announced on April 4, 2024, its decision to begin an orderly wind-down of business operations.
Numerous staff members were informed upon their arrival at work. “My manager notified us we’ll be shutting down on June 5, mentioning that liquidation sales could begin as early as tomorrow. We’re scheduled to have a later meeting to go over the specifics,” an employee shared.
The well-known discount retailer, a staple for bargain hunters, has entered into an agreement with Hilco Global to liquidate its merchandise, along with the sale of store fixtures, furnishings, and equipment.
Starting April 5, 2024, clearance sales will launch at all of the company’s 371 stores spanning Arizona, California, Nevada, and Texas. Hilco Real Estate is tasked with managing the sale of the company’s real estate assets, which includes both owned and leased properties.
In an effort to ensure a smooth transition, Chris Wells, Managing Director at Alvarez & Marsal, has been appointed as Chief Restructuring Officer. Concurrent with this appointment, Mike Simoncic, the Interim Chief Executive Officer of 99 Cents Only Stores, will be stepping down from his role.
Mike Simoncic expressed the company’s regret over this outcome, acknowledging the various struggles faced by the retail sector over the past few years. The challenges mentioned included the significant impact of the COVID-19 pandemic, evolving consumer demand, increasing shrink levels, and ongoing inflationary and economic pressures that severely impacted the ability of the company to continue its operations. He made a point to thank the employees, customers, partners, and communities for their longstanding support of the franchise.
Despite efforts to identify a viable path forward, after a thorough examination of all credible alternatives, the company concluded that a wind-down was the most appropriate course of action to take. The primary goal of this decision is to maximize the value of 99 Cents Only Stores’ assets.
As the company prepares to close its doors, customers are likely to find significant discounts as the liquidation sales unfold across its various locations. This marks the end of an era for a company that has for many decades offered affordable goods to cost-conscious shoppers.
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