Commerce, California – Following financial strains, 99 Cents Only, a major dollar store chain with hundreds of locations, is now facing the difficult decision of shuttering the vast majority of its stores. The company announced that an orderly wind-down of its operations will be necessary to maximize the value of its assets.
According to a statement released by 99 Cents Only, the company, along with its financial and legal advisors, conducted a thorough analysis of possible alternatives to keep the business running. However, after months of pursuing these options, it was concluded that a total liquidation would be the best course of action.
Mike Simoncic, the Interim Chief Executive Officer of 99 Cents Only Stores, expressed regret over the need to make such a decision, citing significant challenges in the retail environment over the last several years. Factors such as the impact of the COVID-19 pandemic, changing consumer demands, inflationary pressures, and macroeconomic headwinds have all contributed to the company’s inability to sustain operations.
The company currently operates around 371 locations spread across various states, including California, Texas, Arizona, and Nevada. Known for its strict 99 cent price tags on a wide range of products, 99 Cents Only has been a staple in the discount retail sector since its founding in 1982.
As the liquidation process begins, Simoncic is expected to step down from his role in the coming weeks. Despite the challenges faced by the company, no specific timeline has been provided for the closure of its stores, leaving employees and customers uncertain about the future.
With the closure of the majority of its locations, 99 Cents Only joins a growing list of retail chains that have been forced to make tough decisions due to economic hardships. The impact of these closures will not only be felt by the employees and customers of the stores but also in the communities where they operate. The loss of these discount stores may also have broader implications for the retail industry as a whole.
While the future remains uncertain for 99 Cents Only, the chain’s decision to initiate a winding-down process reflects the ongoing challenges faced by businesses in the ever-evolving retail landscape. As the company navigates through this difficult period, stakeholders are left to ponder the implications of yet another major player in the retail sector bowing out of the market.