99 Cents Only Stores to shutter all 371 locations, sell real estate assets
Citing “significant and lasting challenges in the retail environment,” 99 Cents Only Stores LLC will close all 371 of its stores, selling its 44 owned properties and 333 leased locations in Arizona, California, Nevada and Texas, according to a news release.
The Commerce, Calif.-based company has entered into an agreement with Hilco Global to liquidate all merchandise owned by the company and dispose of fixtures, furnishings and equipment at the company's stores. Hilco Real Estate is managing the sale of the company's real estate assets, both owned and leased, the release said.
The company has appointed Chris Wells, managing director at Alvarez & Marsal, as chief restructuring officer. Mike Simoncic, interim CEO of 99 Cents Only Stores and managing director at Alvarez & Marsal, will step down.
"This was an extremely difficult decision and is not the outcome we expected or hoped to achieve," Simoncic said in the release. "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, all of which have greatly hindered the company's ability to operate. We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades."
Founded in 1982, 99 Cents Only Stores says it had been working with its financial and legal advisers to identify a solution that would allow the business to continue. 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, the release said.
The 99 Cents Stores’ going-out-of-business sale began April 5 and offers up to 30% off on everything from fresh produce to seasonal merchandise and grocery items. The company says gift cards will be accepted through April 19.
Produce people looking for new opportunities
The closures have left many, like a LinkedIn user listed as Adan O., senior buyer of produce for 99 Cents Only Stores, looking for work. Adan O. posted this on his LinkedIn page:
“I'm reaching out today with mixed emotions because as of today, I find myself looking for a new job opportunity. Despite the challenges, I'm proud of the impact our team made in providing affordable, fresh produce to our communities,” he said. “For almost 6 year[s], I had the privilege of ensuring families had access to nutritious options and helping the underserved communities. From forging partnerships with local growers/shippers to managing inventory, every task was driven by a shared commitment to making a difference.”
The former senior produce buyer went on to say that he is looking to “continue this meaningful work.”
Retail real estate available
Among the 44 owned real estate assets being sold are high-profile properties in Los Angeles; Dallas/Fort Worth and Houston, Texas; Phoenix; Sacramento and San Jose, Calif. A complete list of the 44 owned properties and 333 leased properties, including general descriptions and due diligence information, can be viewed on Hilco's website. The properties and leases included in the portfolio can be sold together, individually or in any combination, the release said.
