99 Cents Only to close all locations citing inflation, changing consumer habits. Here’s what we know

Discount retailer 99 Cents Only Stores LLC announced it would close all of its locations and wind down business operations, according to a news release posted Thursday night.

Mike Simoncic, the company’s interim CEO, said challenges in the retail environment from the unprecedented impact of the pandemic, shifting consumer demand and “persistent inflationary pressures” have greatly impacted the company’s operations.

"This was an extremely difficult decision and is not the outcome we expected or hoped to achieve," he said in the release. We deeply appreciate the dedicated employees, customers, partners and communities who have collectively supported 99 Cents Only Stores for decades."

The company entered into an agreement with Illinois-based Hilco Global to liquidate all merchandise and dispose of store fixtures, furnishings and equipment. It also will manage the sale of 99 Cents Only Stores locations, both owned and leased, in Arizona, California, Nevada and Texas, among other things not specified in the news release.

Chris Wells, the managing director at management company Alvarez & Marsal, has been appointed as the chief restructuring officer to facilitate the winding down of the business.

Simoncic will step down, the news release added. The company could not immediately be reached for comment Friday morning for additional comments.

Liquidation sales were scheduled to begin today, but no closing date was given.

99 Cents Only had 371 stores in California, Texas, Arizona and Nevada. In the North Bay, there is one location in Rohnert Park off Rohnert Park Expressway and four Solano County locations in Vallejo, Fairfield and Vacaville.

The discount retailer was founded in 1982 with the first official store opening in Los Angeles. The brand was known for its deep discounts on name-brand items that made it a staple for low-income and budget-conscious shoppers.

The closure announcement follows the news of Dollar Tree planning to close nearly 1,000 stores over the next several years.

You can reach Staff Writer Sara Edwards at 707-521-5487 or sara.edwards@pressdemocrat. com. On Twitter @sedwards380.