The 99 Cents Only store at 2080 E. William St., will be closing in the near future following a vast shutdown of the company’s business operations, though employees at the store didn’t know an exact closure date as of Friday.
“They are starting; they haven’t hit our system,” said Assistant Manager Angela Bowman, referring to liquidation sales.
Bowman said the Carson store has around 20 employees; she wasn’t sure what would happen to them.
In a news release issued Thursday, the company announced the “wind-down” of operations.
“The company has entered into an agreement with Hilco Global to, among other things, liquidate all merchandise owned by the company and dispose of certain fixtures, furnishings, and equipment at the company's stores. Sales under this agreement are expected to begin April 5, 2024 and will be carried out at all 371 of the company's store locations,” reads the release. “Hilco Real Estate (HRE) is managing the sale of the company's real estate assets, both owned and leased, in Arizona, California, Nevada, and Texas. To help facilitate the wind-down, the company has appointed Chris Wells, managing director at Alvarez & Marsal, as chief restructuring officer. Mike Simoncic, interim chief executive officer of 99 Cents Only Stores and managing director at Alvarez & Marsal, will step down.”
Simoncic said it was a difficult decision to make and “not the outcome we 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,” he said. “We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades."
The news release further reads: “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. 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 company was founded in 1982 and at the time of the announcement operated approximately 370 stores in California, Texas, Arizona and Nevada, according to the release.
For information, visit https://99only.com/.