99 Cents Only Stores, a West Coast discount chain with locations in California, Texas, Arizona, and Nevada, has announced that it is winding down its business operations. This was announced in a press release on Thursday. The company has faced challenges in the retail environment over the past few years, including the impact of COVID-19, shifting consumer demand, rising levels of shrink, inflationary pressures, and other macroeconomic headwinds.
To facilitate the liquidation process, 99 Cents Only Stores has entered into an agreement with financial services company Hilco Global. This agreement will involve the sale of merchandise, fixtures, furnishings, and equipment at the company’s 371 stores. Hilco Real Estate will handle the sales of the store locations in the four states where 99 Cents operates.
Chris Wells will assume the role of chief restructuring officer following Simoncic’s decision to step down from his position as interim chief executive officer. Reports from Bloomberg indicated that the chain had been considering a bankruptcy filing prior to this announcement.