99 Cents Only Stores—a discount chain in California, Arizona, Nevada, and Texas—has announced that it will close all locations.
"This was an extremely difficult decision and is not the outcome we expected or hoped to achieve," the company's interim CEO, Mike Simoncic, said in a press release dated Thursday, April 4.
"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."
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Like many retailers emerging from the pandemic, the West Coast chain struggled with rising costs and shrink, which is higher merchandise losses from customer errors, damage, internal losses, and shoplifting, CNN reported.
The company added that it has entered into an agreement with financial services company Hilco Global to liquidate its merchandise, as well its fixtures, furnishings, and equipment at its 371 stores.
Hilco Real Estate will manage the sales of its store locations in the four states. The company added that Simoncic would also step down from his role, and Chris Wells would serve as chief restructuring officer.
Bloomberg reported last week that 99 Cents was considering a bankruptcy filing.
The 99 Cents Only stores were founded in 1982.
