99 Cents Only Stores Announces Store Closings, Including El Paso Store
EL PASO, TX – 99 Cents Only Stores LLC announced plans to begin an orderly liquidation of its business operations, closing its 371 stores, including the one located in El Paso, Texas.
The company has entered into an agreement with Hilco Global to, among other things, liquidate all company-owned merchandise and dispose of certain fixtures, furnishings and equipment at the company’s stores.
The California-based discounters will close nationwide, including the one in downtown El Paso, just off the Paso del Norte Bridge.
Even with concerns that the downtown El Paso location meets the criteria of a food desert, the news of the store closure came as a shock and a surprise to shoppers at the 99 store in El Paso, especially El Paso residents who live near the store and Juarez residents who frequent the port of entry.
Through a statement, the company had announced that sales under this agreement would begin on April 5, 2024 and would take place at the company’s 371 stores.
Hilco Real Estate (HRE) is managing the sale of the company’s owned and leased real estate assets in Arizona, California, Nevada and Texas, where the company maintains a presence.
Mike Simoncic, interim CEO of 99 Cents Only Stores and CEO of Alvarez & Marsal, said the decision has been a very complicated one, given that it is not the outcome they had hoped to achieve.
“Unfortunately, the past few years have presented significant and enduring challenges in the retail sector, including the unprecedented impact of the COVID-19 pandemic, changes in consumer demand, rising shrink, persistent inflationary pressures and other adverse macroeconomic factors, which have greatly eroded the company’s operating capacity. We deeply appreciate the dedication of the employees, customers, partners and communities that have collectively supported 99 Cents Only Stores for decades,” commented Simoncic
To facilitate the liquidation, the company has appointed Chris Wells, as Chief Restructuring Officer. The company noted that a thorough analysis of all available alternatives was conducted to identify a solution that would allow the business to continue. After months of searching, it was finally determined that an orderly liquidation was necessary.
