In a move that shakes up the retail landscape, 99 Cents Only Stores will shutter all 371 of its outlets across California, Arizona, Nevada, and Texas, as announced by interim CEO Mike Simoncic. Citing a tumultuous retail environment magnified by the COVID-19 pandemic, changing consumer patterns, and economic pressures, Simoncic expressed regret over the decision, emphasizing the lasting difficulties faced by the company, as per CBS News Los Angeles. The closures spell the end of an era for a brand that has been a bargain hunter's go-to since 1982.
Amidst the winding down, Los Angeles County Supervisor Janice Hahn has stepped forward, signaling that the county is prepped to render aid to the thousands of workers who will be impacted by the closures, "I am worried about the thousands of 99 Cents Store workers across LA County who are going to lose their jobs, but LA County is ready to help," Hahn stated, according to her official website. Assistance plans include not just short-term aid, but also job training and support aimed at securing better employment opportunities.
Liquidation sales at the affected locations are set to begin promptly on Friday, with consumers like Julie Ann Mckenzie expressing concern over rising costs and the benefit of shopping at nearby stores like 99 Cents Only. The retailer, in a bid to maximize the value of its assets during this transitional period, has partnered with Hilco Real Estate for the liquidation process, the company confirmed in a statement.
With an action plan slated for delivery in 60 days, the Department of Economic Opportunity and the Department of Consumer and Business Affairs has been directed by Hahn to report back, with the aim of harnessing Rapid Response and other services to cushion the blow for the employees. Echoing this sentiment, Hahn has conveyed to her county website, “We have a department that can step in during an event like this and help workers with not only short-term assistance to get through this difficult time but job training and support to help them get a better job.” This proposal comes in the wake of a similar successful county initiative, supporting workers after the closure of the Farmer John meatpacking plant.
The demise of 99 Cents Only Stores is a stark reminder of the fragility within the retail sector, which continues to face an evolving set of challenges. The company's officials acknowledged having explored numerous routes to stay in business before arriving at the conclusion that a systematic closure was the most viable option left.
