ABC7 Eyewitness News99 Cents Only Stores - a discount chain in California, Texas, Arizona and Nevada - is winding down its business operations, according to a press release from the company on Thursday.
Like many retailers emerging out of the pandemic, the West Coast chain has struggled with rising costs and shrink - which is higher merchandise losses from customer errors, damage, internal losses and shoplifting. "This was an extremely difficult decision and is not the outcome we expected or hoped to achieve," said Mike Simoncic, interim chief executive officer of 99 Cents, in the release.
The company said it has entered into an agreement with financial services company Hilco Global to liquidate its merchandise. It will also work with the firm to get rid of fixtures, furnishings and equipment at its 371 stores.Simoncic will step down from his role, the company said, and Chris Wells will serve as chief restructuring officer.The-CNN-Wire & 2024 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.