One of the nation’s major dollar store chains is shutting down the vast majority of its locations due to financial strains.
99 Cents Only shops will begin shuttering its hundreds of locations on Friday as the company moves toward total liquidation.
“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 in a press release.
“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.”
DOLLAR STORE CHAIN TO CLOSE 1,000 STORES AS EXPERTS POINT TO INFLATION AND CRIME BEING TOP FACTORS
99 Cents Only LLC currently maintains approximately 371 locations, all of which are set for merchandise and real estate liquidation.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said the company’s Interim Chief Executive Officer of 99 Cents Only Stores Mike Simoncic.
DOLLAR GENERAL DROPS SELF-CHECKOUT AT HUNDREDS OF STORES TO REDUCE THEFT
He continued, “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 also announced that Simoncic will step down in the coming weeks as the liquidation begins.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
99 Cents Only LLC does business in multiple states, including California, Texas, Arizona and Nevada.
The dollar store chain was founded in 1982 and is based in Commerce, California. Its locations are known for strict 99 cent price tags on a wide variety of goods.
No strict timeline for the business’ wind-down has been given.