The COVID-19 pandemic, rising shrink and the effects of inflation were among the causes that 99 Cents Only cited in a decision to liquidate.
The company has entered into an agreement with Hilco Global to liquidate all merchandise owned by 99 Cents Only, as well as fixtures and other properties. Liquidation sales are set at all 371 of the company’s store locations.
To help facilitate the wind down, 99 Cents Only has appointed Chris Wells, managing director of consulting firm Alvarez & Marsal, as chief restructuring officer. Mike Simoncic, 99 Cents Only interim CEO 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. “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 company and financial advisors engaged in an extensive analysis of all available and credible alternatives to identify a solution that would allow the business to continue, 99 Cents Only principals reported. After months of actively pursuing alternatives, the company ultimately determined an orderly wind down was necessary and the best way to maximize the value of 99 Cents Only Stores’ assets.
