By Alicia Clanton | Bloomberg
Discount retailer 99 Cents Only Stores LLC announced plans to wind down its business operations in a press release on Thursday.
The firm has struck an agreement with Hilco Global to liquidate merchandise and dispose of certain fixtures, furnishings and equipment at all 371 of its stores, starting on April 5, according to the release. Hilco Real Estate is managing the sale of the firm’s real estate assets, both owned and leased, in Arizona, California, Nevada and Texas, reads the release.
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99 Cents has appointed Alvarez & Marsal managing director Chris Wells as chief restructuring officer, while Mike Simoncic, who is 99 Cents’ interim chief executive officer and managing director at Alvarez & Marsal, will step down.
“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,” Simoncic said in the release.
Bloomberg reported last week that the retailer was mulling a bankruptcy filing as it grappled with a liquidity shortfall.
