Shop for only 99 cents in San Clemente. (Archive photo/SCNG)
Written by Alicia Clanton | Bloomberg
Discount retailer 99 Cents Only Stores LLC announced plans to scale back its business operations in a press release on Thursday.
The company has entered into an agreement with Hilco Global to divest merchandise and dispose of certain fixtures, furnishings and equipment at all of its 371 stores, effective April 5, according to the release. Hilco Real Estate is managing the sale of the company's real estate assets, both owned and leased, in Arizona, California, Nevada and Texas, the release said.
99 Cents has appointed Chris Wells, managing director of Alvarez & Marsal, as chief restructuring officer, while Mike Simoncic, interim CEO of 99 Cents and managing director of Alvarez & Marsal, will step down.
“Unfortunately, the past several years have presented significant and enduring challenges in the retail environment, including the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of deflation, persistent inflationary pressures and other macroeconomic headwinds, all of which have impacted the retail environment,” he said. “Significantly hindered the company's ability to operate,” Simoncic said in the statement.
Bloomberg reported last week that the retailer was considering filing for bankruptcy as it was strapped for cash.
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