California Retail Chain Shutting Down All 370 Stores Due to Ongoing Inflation and Economic Challenges
California-based retail chain 99 Cents Only Stores is closing all 371 stores due to inflation and economic challenges. The closure spans locations in Arizona, California, Nevada, and Texas. Interim CEO Mike Simoncic cited various factors such as the COVID-19 pandemic, shifting consumer demands, and persistent inflation as reasons for the closures. The company will liquidate assets in partnership with Hilco Global.
California-based retail chain 99 Cents Only Stores will shutter all of its 371 stores in the coming months, citing inflationary pressures and economic headwinds.
The store, which was founded in 1982, made the announcement on Thursday that all of its stores across Arizona, California, Nevada, and Texas would be closed down. Mike Simoncic, the Interim Chief Executive Officer of 99 Cents, pinned the blame for the closures on a variety of factors, including the COVID pandemic and a struggling economy.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” Simoncic said. “Unfortunately, the last several years have presented significant and lasting challenges in the retail environment, including the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures and other macroeconomic headwinds, all of which have greatly hindered the Company’s ability to operate.”
The company said in a press release that it would be entering an agreement with Hilco Global to liquidate all of its merchandise and other equipment and furnishings from the store.
“99 Cents Only Stores, together with its financial and legal advisors, engaged in an extensive analysis of all available and credible alternatives to identify a solution that would allow the business to continue,” the company said. “Following months of actively pursuing these alternatives, the company ultimately determined that an orderly wind-down was necessary and the best way to maximize the value of 99 Cents Only Stores’ assets.”
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The store, once one of the top extreme value retail stores in the Western United States, sold inexpensive produce, household items, seasonal and party merchandise, office supplies, and other products. Currently, the company has about 17,000 employees, meaning they all could be out of a job as the company closes up.
“We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades,” Simoncic added.
California retailers have struggled in recent years due to the impacts of COVID lockdowns, widespread shoplifting at many stores in urban areas, and inflation that has plagued the economy under President Joe Biden.
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