99 Cents Only Stores Faces Closure: End of an Era

In a significant announcement, 99 Cents Only Stores revealed plans to shut down all of its locations. The decision comes after facing challenges related to the pandemic, shifting consumer preferences, inflation, and other economic factors.

Established in 1982, 99 Cents Only Stores currently operates nearly 317 stores across California, Texas, Arizona, and Nevada. The company has been known for offering a wide range of items at affordable prices, including household goods, groceries, snacks, office supplies, and more.

Mike Simoncic, the Interim CEO, expressed the difficulty of the decision, highlighting the unforeseen challenges in the retail environment. The company cited the lasting impacts of the COVID-19 pandemic, changes in consumer behavior, rising costs, and inflation as significant hurdles.

Despite efforts to explore alternatives, including engaging in extensive analysis and discussions, the company concluded that an orderly wind-down was the best course of action to maximize asset value.

As part of the wind-down process, 99 Cents Only Stores has reached an agreement with Hilco Global to liquidate merchandise and dispose of certain assets. The closure will affect approximately 14,000 employees.

99 Cents Only Stores Faces Closure: End of an Era

Founded by David Gold in Los Angeles, 99 Cents Only Stores introduced the concept of selling goods at a single price point. Over the years, the company aimed to provide customers with quality products at affordable prices.

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Despite maintaining a price of 99 cents for most of its existence, the company faced challenges in 2008, leading to price adjustments due to inflation and rising costs. In 2011, the company was sold in a buyout to private equity firm Ares Management and the Canada Pension Plan Investment Board.

An official closing date for the stores has not yet been announced. The company expressed gratitude to employees, customers, partners, and communities for their support over the years.

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