LOS ANGELES, April 4 (Xinhua) -- 99 Cents Only Stores, one of the leading extreme value retail chains in the United States, on Thursday announced plans to close all 371 of the company's stores and commence an orderly wind-down of its business operations after more than four decades.

Founded in Los Angeles in 1982, the premier deep-discount retailer said in a statement that it has agreed with Hilco Global, an independent financial services company, to liquidate all merchandise owned by the company and dispose of certain fixtures, furnishings, and equipment at the company's stores.

Sales under the agreement with Hilco Global are expected to begin Friday, said the company, adding that Hilco Real Estate is managing the sale of the company's real estate assets, both owned and leased.

"This was an extremely difficult decision and is not the outcome we expected or hoped to achieve," said Mike Simoncic, interim chief executive officer of the company, in the statement.

"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," said Simoncic, who will step down from his role.

The company was mulling a potential bankruptcy filing, according to Bloomberg.

With stores in California, Arizona, Nevada and Texas and more than 17,000 associates, it is popular with many low-income customers in the country.

Several customers took photos for commemoration in a 99 Cents store in Arcadia, Los Angeles on Thursday.

A shopper in his sixties told Xinhua that it was sad and terrible to hear the news. "There are some good deals here. This chain provides affordable goods to our communities." Enditem

Related

Go to Forum >>0 Comment(s)