The popular low-cost retailer 99 Cents Only Store announced on April 4 that it would be shutting down all of its existing 371 stores nationwide. The company stated that it would start preparations to permanently close all its locations.
The closures will impact around 39 stores in Arizona. Liquidation of merchandise will commence this weekend at the outlets, with assistance from Hilco Real Estate. “This was an extremely tough decision and not the result we anticipated or hoped for,” said interim CEO Mike Simoncic in a press release adding, “Regrettably, the past few years have brought considerable and enduring obstacles in the retail landscape.”
Why Is Every Single 99 Cents Only Store Closing Down?
Simoncic cited numerous factors that led to the business closure. Influences included the effects of COVID-19, changing consumer preferences, inflation and rising inventory loss levels from theft, damage or administrative mistakes. “We deeply appreciate the dedicated personnel, patrons, collaborators, and communities who have collectively supported 99 Cents Only Stores for decades,” Simoncic said.
The company, established in 1982 in Los Angeles by David Gold, pioneered the single-price retail model. 99 Cents Only has grown to 277 outlets, primarily in California but also in Nevada, Arizona and Texas, with approximately 14,000 staffers. The company announced on Thursday, April 4, that all 99 Cents Only Stores would be shutting down as business activities begin to conclude.
99 Cents Only has outlets in California, Arizona, Nevada and Texas and employs around 14,000 people. The privately held company said it had come to an agreement with Hilco Global to liquidate all of its merchandise and get rid of fixtures, furnishings and equipment at its outlets. Sales are anticipated to start Friday. Hilco Real Estate is handling the sale of the company’s real estate properties, which are owned or rented.
