99 Cents Only Stores announces plans to wind down operations
DISCOUNT retailer 99 Cents Only Stores announced plans to wind down its business operations in a press release on Thursday (Apr 4).
The firm has struck an agreement with Hilco Global to liquidate merchandise and dispose of certain fixtures, furnishings and equipment at all 371 of its stores, starting on Apr 5, according to the release. Hilco Real Estate is managing the sale of the firm’s real estate assets, both owned and leased, in Arizona, California, Nevada and Texas, reads the release.
99 Cents has appointed Alvarez & Marsal managing director Chris Wells as chief restructuring officer, while Mike Simoncic, who is 99 Cents’ interim chief executive officer and managing director at Alvarez & Marsal, will step down.
“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,” Simoncic said in the release.
Bloomberg reported last week that the retailer was mulling a bankruptcy filing as it grappled with a liquidity shortfall. BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
Billionaire Geiger is said to near US$7 billion L’Occitane buyout
HCA beats first-quarter profit estimates on higher patient admissions
US FDA approves Pfizer’s gene therapy for rare bleeding disorder
EU toughens rules on Chinese fashion retailer Shein
Best World under fire from shareholders at AGM over dividends, director salaries
‘Extreme’ climate blamed for world’s worst wine harvest in 62 years