June 16, 2024

End of an Era: 99 Cents Only Stores Announces Business Wind-Down Affecting All Five San Antonio Locations

In a significant development that marks the end of an era for bargain hunters, 99 Cents Only Stores LLC (“99 Cents”) has announced plans for an orderly wind-down of its business operations. The company, renowned for its affordable merchandise, is set to liquidate all inventory and assets across its 371 store locations, beginning April 5, 2024.

Under an agreement with Hilco Global, 99 Cents will initiate the liquidation process, including the sale of merchandise, fixtures, furnishings, and equipment at all its stores. Additionally, Hilco Real Estate (HRE) will manage the sale of the company’s real estate assets in Arizona, California, Nevada, and Texas.

To facilitate the wind-down process, Chris Wells, Managing Director at Alvarez & Marsal, has been appointed as the Chief Restructuring Officer, while Mike Simoncic, Interim Chief Executive Officer, and Managing Director at Alvarez & Marsal, will step down from his position.

Simoncic expressed the challenges that led to this difficult decision, citing the enduring impacts of the COVID-19 pandemic, shifting consumer demand, rising operational costs, and other macroeconomic headwinds. Despite efforts to explore alternatives, including an extensive analysis with financial and legal advisors, the company concluded that an orderly wind-down was the most viable option to maximize asset value.

“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.”

99 Cents Only Stores, founded in 1982, has been a prominent player in the retail landscape, offering a broad assortment of name-brand and attractively priced merchandise across California, Texas, Arizona, and Nevada. The announcement of its wind-down marks the end of an era for loyal customers, dedicated employees, partners, and communities who have supported the brand for decades.

As the company embarks on its wind-down journey, its 371 stores will gradually close their doors, signifying the end of an era for one of the most recognizable names in discount retail.

For bargain hunters and loyal patrons, it’s a bittersweet farewell to a beloved institution that has provided affordable goods and seasonal offerings for generations.

Among the store locations affected are the five in San Antonio: 3025 West Ave, 4350 Callaghan Rd, 2942 Thousand Oaks Drive, 1864 S. WW. Road, and 5464 Walzem Rd. These closures will undoubtedly leave a void in the local retail landscape and impact both customers and employees alike.