Recently, 99 Cents Only Store chain in Oakland, California, announced its decision to wind down its business operations. The news came as a surprise as the company had been operating for over 20 years across California, Texas, Arizona, and Nevada. According to a recent press release by the company’s interim CEO Mike Simoncic, the move was necessary due to rising costs and shrinkage.
The COVID-19 pandemic had a significant impact on the company’s ability to function. Additionally, shifting consumer demand and other economic issues also played a role in their financial struggles. Despite these challenges, 99 Cents entered into an agreement with Hilco Global to liquidate its merchandise and fixtures from its 371 stores. Additionally, Hilco Real Estate will handle store locations in the four states.
Simoncic has stepped down from his role as CEO of the company. Chris Wells has been appointed as the new chief restructuring officer, signaling significant changes within the organization. Recent reports from Bloomberg suggest that 99 Cents might explore a bankruptcy filing as a potential solution to its financial woes.
In conclusion, it is clear that the pandemic has had a significant impact on many businesses across industries. However, companies must adapt and make tough decisions to survive in this challenging economic climate. It remains to be seen how other retailers will navigate these uncertain times and what measures they will take to stay afloat in this rapidly changing business landscape.
