The Commerce-based 99 Cents Only store operator announced Thursday it would close all 371 stores and begin liquidation sales starting Friday.
This decision was made pursuant to an agreement with Hilco Global, which will manage the sale of the company's real estate assets across all of its locations in California, Arizona, Nevada and Texas.
“This was a very difficult decision and not the outcome we expected or hoped to achieve,” Interim CEO Mike Simoncic said in a statement. “Unfortunately, the last few years have brought significant challenges to the retail environment, including the unprecedented impact of the COVID-19 pandemic, changes in consumer demand, increased levels of contraction, sustained inflationary pressures, and other macroeconomic headwinds. has posed significant and persistent challenges to the company's ability to operate.”
99 Cents Only store was founded in 1982.
“We are deeply grateful to our dedicated employees, customers, partners, and community who have collectively supported 99 Cents Only Stores for decades.”
Company officials said they have consulted with financial and legal advisors in hopes of finding a way to continue operations.
“After actively pursuing these alternatives for several months, the company ultimately determined that an orderly wind-down was necessary and that 99 Cents Only Stores was the best option to maximize the value of its assets,” the company said in a statement. “I decided that this was the way to go.”
In San Luis Obispo County, 99 Cents Only stores are located in San Luis Obispo and Atascadero. In Santa Barbara County, 99 Cent Only stores are located in Santa Maria, Lompoc, and Santa Barbara.
