BUSINESS
99 Cents Only Stores to close across the US: What other dollar store retailers can shoppers turn to?
A look at bargain retailers as the 99 Cents Only store chain is expected to cease operations...
Founded in Los Angeles in 1982, the era of the 99 Cents Only store is coming to a close, reports Bloomberg.
Dollar retailers have struggled in recent years as the limits on price increases have cut into their profits, leading 99 Cents Only and other chains to place more pressure on their already strained workforce. Bloomberg’s report indicates that a Chapter 11 bankruptcy filing could come after the company warned as much as in late March. However, there is still a chance that the company will be dissolved without such a filing.
The chin plans to “liquidate all merchandise and dispose of some fixtures, furnishings and equipment” with the help of Hilco Global, which also assists with the management of the “sale of real estate assets.” It also appears that interim CEO Mike Simonicic will step aside to make way for Chris Wells, who will serve as the restructuring officer as the business operations are concluded.
Other bargain retailers
The 99 Cents Only company operates 371 stores across four states: California, Texas, Arizona, and Nevada.
Founded in 1982, 99 Cents Only Stores LLC currently operates nearly 371 stores located in California, Texas, Arizona, and Nevada.
Shoppers in these states can still head to Dollar Tree (which owns Family Dollar) and Dollar General, which offer similar deals to the 99 Cents Only store. Dollar General does not stick to such a strict interpretation of its name, offering competitive discounts on its merchandise, including name-brand products from Coca-Cola, Oral B, Secret, and many more.
Recent news from Dollar Tree executives highlights that many in the industry are feeling the pinch and unwilling to alter their business model. Dollar Tree announced closing at least 600 Family Dollar locations in the 2024 fiscal year. Down the road, over the next several years, an additional four hundred stores will be closed, the vast majority of which are Family Dollar locations. The closures will coincide with the expiration of the active leases at these locations.