Many retail chains had to go through months where they took in very limited revenue.
99 Cents Only, which operates 371 locations, has a deep history.
Dave thought selling everything in the store for 99 cents would be hugely popular,” the company shared on its website.
99 Cents Only opened its first store under that name in 1982.
As it grew, the company sold items that are not generally associated with dollar stores.
99 Cents Only stores closing down While it has not filed for any type of bankruptcy yet, 99 Cents Only has decided to close down and liquidate its stores.
“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.”
The sales began on April 5, 2024 and will be carried out at all 371 of the company’s stores, 99 Cents Only shared in a press release.
Retail has seen a bloodbath over the past year. This is partially due to the fact that the Covid made many non-essential retailers take on more debt.
There were months when very little money was made by many retail chains. They still had rent and salaried employees to pay during that lockdown period.
Moreover, compared to their larger competitors, smaller chains experienced more supply chain issues. Even in situations where certain goods were in short supply, larger companies like Walmart, Target, and Dollar General were better able to bargain for lower prices.
Large corporations, such as Costco, were able to maintain predictable costs by leasing their own ships. Smaller chains ended up bankrupt because they were unable to pull some of the same levers as larger chains and because they incurred more debt.
Certain retailers were able to reorganize and emerge from bankruptcy, such as Party City and David’s Bridal. Several other companies, such as Tuesday Morning, Bed Bath and Beyond, and Christmas Tree Shops, went from Chapter 11 reorganizations to liquidation because they were unable to manage their finances.
Now, a venerable company with a lengthy history dating back to the 1960s has made the decision to liquidate and close all of its retail locations.
A different kind of dollar store.
In comparison to the industry leaders Dollar General and Dollar Tree, which together have over 19,000 and 16,000 locations, respectively, 371 stores may not seem like much, but they are terribly small. Those discount retailers have a significant purchasing advantage because of their large number of locations.
Larger chains have always benefited from this, but in the present supply chain crisis, it has made it extremely difficult for smaller players to compete.
With 371 locations, 99 Cents Only has a lengthy history.
“The company’s founder, Dave Gold, opened the first store in the 1960s after inheriting a small liquor store in downtown Los Angeles. He decided to test the market by selling wine bottles at a set price of 99 cents. The test proved to be successful right away. According to the company’s website, Dave believed that offering everything in the store for 99 cents would be incredibly popular.
In 1982, 99 Cents Only launched its first store under that name. As the business expanded, it began to sell goods that aren’t typically found in dollar stores.
“The 99 Cents Only Stores provide communities with a delightful range of seasonal and party merchandise, including decorations, costumes, and gifts, in addition to fresh produce and a broad selection of high-quality products. “Merchandise includes name-brand closeouts as well as regularly available food and beverage items like produce, deli meats, and other staple grocery items,” the company continued.
Shops selling 99 Cents Only are closing.
99 Cents Only has made the decision to shut down and liquidate its stores, even though it hasn’t yet declared bankruptcy.
“The company and Hilco Global have reached an agreement for the company to, among other things, liquidate all of its inventory and get rid of some store fixtures, equipment, and furnishings. “.”.
According to a press release from 99 Cents Only, the sales started on April 5, 2024, and will be conducted at each of the company’s 371 locations.
Furthermore, Hilco Real Estate shall oversee the selling of the business’s leased and owned real estate holdings in Arizona, California, Nevada, and Texas.
Interim CEO Mike Simoncic stated, “This was an incredibly difficult decision and is not the outcome we expected or hoped to achieve.”. Regretfully, a number of noteworthy and enduring obstacles have faced the retail industry over the past few years, including the unprecedented COVID-19 pandemic impact, changing consumer preferences, increasing shrink rates, ongoing inflationary pressures, and other macroeconomic headwinds that have substantially impeded the company’s functionality. ****.
Moreover Read: Costco has a response to Sam’s Club’s proposed expansion.
Chris Wells, Managing Director at Alvarez and Marsal, has been named Chief Restructuring Officer by the company following Simonic’s resignation.
