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99 Cents Only Stores Announces Business Wind-down

99 Cents Only Stores
  • 99 Cents Only Stores is closing due to rising costs and pandemic-related challenges, with Hilco Global overseeing liquidation.
  • Chris Wells replaces Mike Simoncic as chief restructuring officer amid considerations of bankruptcy proceedings.

99 Cents Only Stores, a discount chain operating in California, Texas, Arizona, and Nevada, announced Thursday in a press release that it is winding down its business operations.

As is true of many retailers emerging from the pandemic, the West Coast chain has experienced increasing costs and shrinkage, which refers to merchandise lost due to customer mistakes, damage, and shoplifting.

“This decision was not one we anticipated or wanted,” stated Mike Simoncic, interim chief executive officer of 99 Cents, in their release. Unfortunately, over recent years, they’ve encountered significant and lasting challenges from the COVID-19 pandemic, changing consumer demand patterns, rising levels of shrinkage, inflationary pressures, and other macroeconomic headwinds that hinder their ability to operate successfully. All these have severely undermined 99 Cents’ operations ability.”

Hilco Global will assist the company with liquidating merchandise at 371 of their locations as part of this agreement, in addition to disposing of fixtures, furnishings, and equipment at their locations.

Hilco Real Estate will oversee sales at each store location across four states for 99 Cents in their four states of operation, replacing Simoncic, who will step aside as chief restructuring officer, with Chris Wells as his replacement, according to Hilco’s announcement last week. Bloomberg reported last week that 99 Cents was considering filing bankruptcy protection proceedings.

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