In a statement released by the company, 99 Cents Only Stores LLC announced on April 4 that it plans to commence an orderly wind-down of all its business 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. All 371 stores that the company operates will close.

The company, founded in 1982, operates two stores in the Santa Clarita Valley at 23300 Valencia Blvd., Valencia, CA 91355 and at 24200 Lyons Ave., Newhall, CA 91321. All stores have begun liquidation sales at all locations in California, Texas, Arizona and Nevada.

Hilco Real Estate is managing the sale of the company’s real estate assets, both owned and leased. 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.

“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said Simoncic. “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.”

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.