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After more than 40 years in business, 99 Cents Only Stores is permanently closing all of its stores.
The retail chain, once known for its sub-dollar prices, announced Thursday the closure of all 371 stores.
“This was a very difficult decision and not the outcome we expected or hoped to achieve,” Interim CEO Mike Simoncic said in a news release. “Unfortunately, recent years have presented significant and persistent challenges to the retail environment.”
Simoncic said there were several factors contributing to the discount store company’s dire situation, including the “unprecedented impact left by the COVID-19 pandemic.” He also cited rising levels of contraction, which refers to inventory and cash losses due to changes in consumer demand, inflationary pressures, theft, damage and mismanagement.
“We are deeply grateful to our dedicated employees, customers, partners, and community who have collectively supported 99 Cents Only Stores for decades,” said Simoncic.
No closing schedule indicated.
The company did not provide a timeline for U.S. store closures or how many employees would lose their jobs.
USA TODAY has reached out to 99 Cents Only for comment.
Management worked with financial and legal advisors to find a credible alternative to mass closures, but no solution could be reached, according to a news release.
“The company ultimately determined that an orderly wind-down was necessary and the best way to maximize the value of 99 Cents Only Store’s assets,” the company said.
The company was founded in 1982 and initially offered guests a “combination of closeout branded merchandise, miscellaneous goods, and fresh produce” for less than 99 cents.
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