On Thursday, 99 Cents Only Stores announced plans to shut down all 371 of its stores, bringing an end to business operations spanning over four decades.
With locations across California, Arizona, Nevada, and Texas, the 99 Cents Only brand employs a workforce of approximately 14,000 employees. There are approximately 40 stores in the state of Arizona.
The company 99 Cents Only will be selling off all of their merchandise and getting rid of fixtures, furnishings, and equipment.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” interim Chief Executive Mike Simoncic said in a statement. “Unfortunately, the last several years have presented significant and lasting challenges in the retail environment.”
Simoncic expressed that a multitude of factors contributed to the decision, notably the impact of the COVID-19 pandemic, evolving consumer preferences, ongoing inflationary pressures, and the substantial loss of inventory due to theft as key drivers behind the closure of the company.
After attempting to find other options to sustain the company, it was ultimately determined by executives that closing down was the most effective method to optimize the worth of 99 Cents Only stores’ assets. Despite actively pursuing alternatives for several months, this decision was made.
The Company express their gratitude for the unwavering support of its committed employees, customers, partners, and communities throughout the years.
The brand’s competitor Dollar Tree has recently announced their plans to increase the price cap for specific items from $5 to $7. They too are working to shutter 600 Family Dollar stores in the first half of the year as part of its portfolio optimization strategy.
