(99 Cents Store In Cathedral City)
Coachella Valley, CA
In a blow to more affordable shopping options, 99 Cents Only Stores LLC today announced plans to commence an orderly wind-down of its business operations. There are currently 99 cents stores in Palm Springs, Cathedral City, Palm Desert, La Quinta, Coachella Valley, and Desert Hot Springs, all set to close.
The Company has entered into an agreement with Hilco Global to, among other things, liquidate all merchandise owned by the Company and dispose of certain fixtures, furnishings, and equipment at the Company’s stores. Sales under this agreement are expected to begin April 5, 2024 and will be carried out at all 371 of the Company’s store locations. Hilco Real Estate (HRE) is managing the sale of the Company’s real estate assets, both owned and leased, in Arizona, California, Nevada, and Texas. To help facilitate the wind-down, the Company has appointed Chris Wells, Managing Director at Alvarez & Marsal, as Chief Restructuring Officer. Mike Simoncic, Interim Chief Executive Officer of 99 Cents Only Stores and Managing Director at Alvarez & Marsal, will step down.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said Simoncic. “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. We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades.”
99 Cents Only Stores, together with its financial and legal advisors, engaged in an extensive analysis of all available and credible alternatives to identify a solution that would allow the business to continue. Following months of actively pursuing these alternatives, the company ultimately determined that an orderly wind-down was necessary and the best way to maximize the value of 99 Cents Only Stores’ assets.