A major dollar store chain is closing most of its stores due to financial issues. 99 Cents Only stores will start shutting down on Friday, heading toward full liquidation.
The company explored all options with advisors but found shutting down was the best choice. "99 Cents Only Stores...ultimately determined that an orderly wind-down was necessary," said the press release.
About 371 locations will close, with plans to liquidate merchandise and real estate. The Interim CEO, Mike Simoncic, called it a tough decision not anticipated.
Simoncic cited many challenges, including COVID-19, changing consumer demands, and economic difficulties. "Unfortunately, the last several years have presented significant and lasting challenges," he explained.
Simoncic is also stepping down soon as the liquidation process starts. The company operates in states like California, Texas, Arizona, and Nevada.
Founded in 1982 and based in Commerce, California, the stores were known for sticking to a 99 cent price point. There's no specific timeline for the complete shutdown yet.