End of an Era: 99 Cents Only Stores Announce Closure

End of an Era: 99 Cents Only Stores Announce Closure

With plans to wind down its business activities, 99 Cents Only announced that it will be closing all of its locations.

The business was established in 1982 and now has around 317 locations throughout California, Texas, Arizona, and Nevada.

The business formally declared its intention to close on Thursday, citing financial challenges brought on by the pandemic, shifting consumer demand, and increasing inflation.

“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” Mike Simoncic, Interim Chief Executive Officer stated. “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.”

Popular discount stores were well-known for offering a large selection of goods at affordable costs, including office supplies, party supplies, fresh groceries, snacks, home goods, and cosmetics.

The company, which employs about 14,000 people, announced that it has negotiated a deal with Hilco Global to sell all of its products and get rid of some store-specific furniture, fixtures, and equipment.

“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 stated. “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.”

According to the Los Angeles Times, 99 Cents Only “pioneered the single-price retail concept” when it was founded in Los Angeles in 1982 by David Gold.

Dollar stores were perceived as locations that primarily sold rubbish or unpopular things during that time. But Gold wanted his stores to be the exact opposite of that. He desired that the stores provide consumers with well-made, practical goods at reasonable prices.

The prices of the products the company sold stayed at 99 cents for the majority of its existence. That didn’t change until 2008, when the Times reports that rising food prices, higher minimum wages, and inflation drove price adjustments.

The corporation has not yet disclosed an official closure date.

“We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades,” Simoncic stated.