January 1, Popular Chain Shuts Down, Inflation and Economy Blamed

California retail chain 99 Cents Only Stores is set to close all 371 of its locations in Arizona, California, Nevada, and Texas. The company cites inflationary pressures and economic headwinds as the cause for the closures, as announced on Thursday.

Interim Chief Executive Officer of 99 Cents, Mike Simoncic, pointed to factors such as the COVID pandemic and a struggling economy for the company’s downfall. “This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” Simoncic said.

“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,” he continued. “All of which have greatly hindered the Company’s ability to operate.”

In a press release, the company announced plans to enter an agreement with Hilco Global to liquidate all merchandise and other equipment and furnishings. “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 said.

“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.”

Once a top extreme value retail store in the Western United States, 99 Cents Only Stores sold inexpensive produce, household items, seasonal and party merchandise, office supplies, and more. With around 17,000 employees, they all face the risk of unemployment as the company closes its doors.

Simoncic expressed gratitude to those who supported the company over the years, saying, “We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades.”

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