Discount Retailer Announces Liquidation Plan
Discount retailer 99 Cents Only Stores LLC has announced plans to wind down its business operations, marking the end of an era for the chain. The company has entered into an agreement with Hilco Global to liquidate merchandise and sell off fixtures and equipment at its 371 store locations, with sales expected to commence on April 5, 2024.
The decision to wind down operations comes after years of challenges in the retail sector, compounded by the unprecedented impact of the COVID-19 pandemic. Mike Simoncic, 99 Cents Only Stores’ interim chief executive officer, expressed regret over the outcome, citing various factors, including shifting consumer demand, inflationary pressures, and other macroeconomic headwinds.
Despite efforts to explore alternatives, including a thorough analysis of all available options, the company determined that an orderly wind-down was the best way to maximize the value of its assets.
Chris Wells, Managing Director at Alvarez & Marsal, has been appointed Chief Restructuring Officer to facilitate the wind-down process. Simoncic will step down as Interim CEO.
Founded in 1982, 99 Cents Only Stores LLC operates stores in California, Texas, Arizona, and Nevada. It offers a wide range of merchandise at discounted prices. The company’s decision to wind down operations marks the end of an era for the popular discount retailer.
For more information about 99 Cents Only Stores, visit their website at http://www.99only.com/.
