99 Cents Only Stores to permanently close all 371 locations

Last Updated on April 4, 2024 by The HD Post Staff

CALIFORNIA – 99 Cents Only Stores announced April 4, that they are winding down their business operations and will permanently close all of their 371 store locations.

99 Cents Only Stores Interim Chief Executive Officer Mike Simoncic said the extremely difficult decision is not the outcome they expected or hoped to achieve.

“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.

Liquidation Sale

The company has entered into an agreement with Hilco Global to liquidate all merchandise and dispose of certain fixtures, furnishings, and equipment at the stores.

Sales are expected to begin April 5 and will be carried out at all 371 store locations.

Hilco Real Estate is managing the sale of the company’s real estate assets in Arizona, California, Nevada, and Texas.

Ongoing challenges caused by inflation

The news of 99 Cents Only Stores closure comes after Dollar Tree announced in a recent earnings call that they would be closing 1,000 stores – both Family Dollar and Dollar Tree brands over the course of the next several years.

In addition, prices will rise to around $1.50 and cap at around $7 for higher-priced items.

According to the US Bureau of Labor Statistics prices paid by companies and suppliers increased by 0.6% month-to-month in February. The uptick in production costs highlights the ongoing challenges caused by inflation.