Discount retailer 99 Cents Only Stores has announced plans to wind down all 371 locations as the company struggles to continue operating amid enduring challenges.
The firm has entered into an agreement with Hilco Global to liquidate all merchandise and dispose of certain fixtures, furnishings, and equipment. Hilco Real Estate is managing the sale of 99 Cents’ real estate assets, both owned and leased.
Chris Wells, MD at Alvarez & Marsal, has been appointed chief restructuring officer to facilitate the process. Mike Simoncic, interim CEO of 99 Cents Only Stores and MD at Alvarez & Marsal, will step down.
“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,” said Simoncic.
The company had worked with its financial and legal advisors for months to find a solution for its continued operations before deciding that a wind-down was necessary.
Founded in 1982, 99 Cents operates in California, Texas, Arizona and Nevada.
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