99 Cents Only Stores, a well-known name in the discount retail sector, has recently announced its decision to close down its operations and enter into liquidation. This decision comes after facing insurmountable difficulties in navigating the challenging retail landscape, leading to an orderly wind-down of the business.
The liquidation sales are set to commence on April 5, 2024, across the 371 stores located in California, Texas, Arizona, and Nevada. The company has partnered with Hilco Global for the liquidation process, which will involve the sale of merchandise, fixtures, furnishings, and equipment at deeply discounted rates, expected to draw significant consumer attention.
In addition to the merchandise liquidation, Hilco Real Estate (HRE) is overseeing the sale of the company’s real estate assets, including both owned and leased properties across the four states where the stores are located. This strategic move aims to maximize the value of the company’s assets during the wind-down phase.
Chris Wells, Managing Director at Alvarez & Marsal, has been appointed as the Chief Restructuring Officer to oversee the liquidation process, while Mike Simoncic, the Interim Chief Executive Officer, will step down following the announcement. Simoncic expressed deep regret, citing several years of significant challenges that have plagued the retail environment, including the impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures, and other macroeconomic headwinds.
Founded in 1982, 99 Cents Only Stores has been a prominent player in the discount retail market, offering a wide range of name-brand and attractively priced merchandise. The decision to wind down the business comes after a thorough analysis and pursuit of all available alternatives to keep the company afloat. However, the current retail environment and a reported liquidity shortfall have led to this difficult but necessary decision to close.
