99 Cents Only Plans to Close All 371 Stores
Founded in 1982 by Dave Gold, 99 Cents Only first opened its doors in Los Angeles, California. Since then, the company has opened 370 more stores in California, Texas, Nevada, and Arizona.
Source: Adobe Stock
However, on April 5, 2024, 99 Cents Only announced that it would close all 371 locations between then and June 3, 2024.
It Hasn’t Been All Smooth Sailing for 99 Cents Only
While this pronouncement was certainly a surprise to the stores’ customers and employees, the truth is that it hasn’t been going all that well for 99 Cents Only behind the scenes.
Source: iStock
In October 2011, the original owners, the Gold family, sold the company to Ares Management and the CPP Investment Board for $1.6 billion. Then, in September 2023, they announced that they had sold their LA warehouses and were extremely close to filing for Chapter 11 bankruptcy.
Liquidating Became the Only Option
Finally, they realized at the start of 2024 that liquidation was the only answer and made its distressing announcement.
Source: @MikeSimoncic/Linkedin/@99CentsOnly/Facebook
CEO Mike Simoncic said in a statement, “This was an extremely difficult decision and is not the outcome we expected or hoped to achieve. 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.”
14,000 Americans Are Losing Their Jobs
Of course, Simoncic and fans of 99 Cents Only are disappointed, but it’s the nearly 14,000 company employees that will be the most negatively affected.
Source: Freepik
As things stand right now, each and every one of these people will be out of a job by June 5. However, according to several sources, there is a chance that many of these thousands of Americans could still be working at a 99 Cents Only store at the end of the year.
The Former President of Big Lots May Save the Day
Just a few days after the 99 Cents Only announcement, Mark Miller, the former president of popular retailer Big Lo and current CEO of Pic ‘N’ Save, made a declaration of his own. He said he would try to buy the 99 Cents Store corporation and keep as many stores as possible open.
Source: Shutterstock
Miller said that he already has his investors organized and plans to acquire the stores in Southern California, close them down for just three months, and then reopen with a return to the store’s original atmosphere.
The 99 Cents Store Once Felt Like a “Treasure Hunt”
As Miller explained, 99 Cents Only once felt like a “treasure hunt” for great products at fantastic prices. Miller told ABC7, “What I hope is going to happen here is that you’re going to see a new, better, more unique 99 Cents store.”
Source: @99CentsOnly/Facebook
He continued, “What I want to make sure is that yes, there’s a big food business at the 99 Cents stores, and that we continue as far as great goods, great prices… great bargains, great treasure hunt items.”
Meanwhile LA County Is Making Plans in Case the Buyout Doesn’t Go Through
However, Miller’s deal has yet to be finalized. In the meantime, the Lost Angeles Board of Supervisors has decided to create a plan that would assist the thousands of LA residents who may be losing their jobs over the next few months.
Source: LA County Board of Supervisors
One of the LA County Supervisors, Janice Helm, said in a statement, “I am worried about the thousands of 99 Cents Store workers across L.A. County who are going to lose their jobs, but L.A. County is ready to help.”
What Does This Government Assistance Look Like?
Helm explained, “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.”
Source:Freepik
The motion to assist any LA residents who are laid off when the 99 Cents Stores closed will be presented to the board later this week.
LA Is Getting More Expensive Every Day
One of the reasons why helping those who are about to lose their jobs due to the liquidation of the 99 Cents Store is so important is because LA is becoming more and more expensive by the day.
Source: Freepik
As of March 2024, the estimated cost of a family living in LA is a whopping $4,941 per month, and that’s not including rent. The average gallon of milk now costs $4.69 and a loaf of white bread is $4.81.
The Closing of 99 Cents Only Means “Harder Times” Ahead
Now, more than ever, the residents of Los Angeles truly need stores like 99 Cents to be able to afford their groceries, utilities, rent, car payments, etc., every month.
Source: Reddit
LA resident Juan King told the press, “Closing this down is a big discouragement. It’s a sad time because this really means harder times for people who use this to help budget their little bit of finances.”
What’s Next for 99 Cents Stores?
Hopefully, Mark Miller’s plan will come to fruition and the nearly 200 stores in Southern California will only be closed for a few months before opening up again.
Source: Reddit
If it doesn’t, LA lawmakers will try their best to help those who have lost their jobs. However, there’s nothing they can do for the thousands of people who utilized the store’s discount prices to make ends meet in the increasingly expensive city.