FOOD INDUSTRY 99 Cents Only Stores Shuts Down Business Operation By Hernando Ramírez-Santos Cents Only Stores LLC anunS- including the unprecedented impact of the COVID-19 tores LLC announced its pandemic, shifting consumer demand, rising levels of decision to end its discount shrink, persistent in昀氀ationary pressures, and other macro- retail chain operations and economic headwinds, all of which have greatly hindered the close its 371 stores. company’s ability to operate. We deeply appreciate the dedi- 99 Founded 42 years ago, the cated employees, customers, partners, and communities retailer reported that 昀椀nancial di昀케culties due to the who have collectively supported 99 Cents Only Stores for COVID-19 pandemic, persistent in昀氀ation, and changes decades.” in consumer demand, among other factors, led them to Hilco Real Estate (HRE) manages the sale of the company’s end the business. assets, both owned and leased, in Arizona, California, According to a press release, the company has agreed Nevada, and Texas. with Hilco Global to, among other things, liquidate To help facilitate the wind-down, the company has all merchandise owned by 99 Cents Only Stores and appointed Chris Wells, Managing Director at Alvarez & dispose of certain 昀椀xtures, furnishings, and equipment Marsal, as Chief Restructuring O昀케cer. at the company’s stores. 99 Cents Only Stores and its 昀椀nancial and legal advisors Sales under this agreement are expected to begin engaged in an extensive analysis of all available and credi- April 5, 2024, and will be carried out at all 371 of the ble alternatives to identify a solution that would allow the company’s store locations. business to continue. Following months of actively pursuing these alternatives, COVID 19 Impact & In昀氀ation the company ultimately determined that an orderly wind- Mike Simoncic, Interim Chief Executive O昀케cer of 99 down was necessary and the best way to maximize the value Cents Only Stores and Managing Director at Alvarez & of 99 Cents Only Stores’ assets. Marsal, will step down. Founded in 1982 in Los Angeles, CA, 99 Cents Only Stores “吀栀is was an extremely di昀케cult decision and is not the LLC operates 371 stores in California, Texas, Arizona, and outcome we expected or hoped to achieve,” said Simoncic. Nevada and has two distribution centers. 吀栀e discount retai- “Unfortunately, the last several years have presented signi- ler o昀昀ers a broad assortment of name brands, other priced 昀椀cant and lasting challenges in the retail environment, merchandise, and seasonal product o昀昀erings. 7272 MMAAYY//JJUUNNE 2E 200224 4 AABBAASSTOTO..CCOOMM