Discounter 99 Cents Only Stores announced a major shakeup on Thursday, revealing plans to close all 371 locations across the United States permanently.

The closures, effective April 5th, will impact stores in Nevada, California, Arizona, and Texas. The company cited a confluence of challenges for the difficult decision.

A Perfect Storm of Challenges

“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said Mike Simoncic, the interim CEO, who will be stepping down.

According to a company statement, several factors contributed to the closure:

• Lingering effects of the COVID-19 pandemic
• Shifting consumer preferences
• Increased shoplifting
• Inflationary pressures
• Tough economic climate

These issues combined significantly hampered the company’s ability to stay afloat.

Moving Forward

99 Cents Only Stores has partnered with Hilco Global and Hilco Real Estate to oversee the liquidation of remaining merchandise and the sale of its real estate holdings. Chris Wells, the managing director at Alvarez and Marsal, will assume the role of Chief Restructuring Officer during this process.

The company thanked its employees, customers, partners, and communities for their decades of support.

Credits: 2News