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CITY OF COMMERCE, Calif. — The value retailer 99 Cents Only Stores LLC commenced going-out-of-business sales at all of its locations on Friday, as part of a plan to wind down its operations and close all its stores.
The liquidation sale will include all 371 of the retailer’s stores, which are located in Arizona, California, Nevada, and Texas.
To help facilitate the wind-down, the Company has appointed Chris Wells, Managing Director at Alvarez & Marsal, to serve as its chief restructuring officer. Interim chief executive officer Mike Simoncic, who is also 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,” said Simoncic. “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.”
The decision to go out of business came after 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.
