A massive retailer now liquidates and shutters its stores for good while also divesting its real estate assets, the company confirmed.
While it has not filed for any type of bankruptcy yet, 99 Cents Only has decided to close down and liquidate its stores.
“The company has entered into an agreement with Hilco Global to, among other things, liquidate all merchandise owned by the company and dispose of certain fixtures, furnishings, and equipment at the company’s stores.”
The sales began on April 5, 2024 and will be carried out at all 371 of the company’s stores, 99 Cents Only shared in a press release.
In addition, Hilco Real Estate will manage the sale of the company’s real estate assets, both owned and leased, in Arizona, California, Nevada, and Texas.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said interim CEO Mike 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.”
Simonic has stepped down, and the company has appointed Chris Wells, Managing Director at Alvarez & Marsal, as Chief Restructuring Officer, per TheStreet.
While 371 stores seem like a lot, it’s a tiny amount compared to market leaders Dollar General, which has more than 19,000 locations, and Dollar Tree which has more than 16,000.
Having that many locations gives those discount retailers a massive advantage when it comes to buying.
That has always been an edge for larger chains, but, in the current era of supply chain problems, it has made it very hard for smaller players to compete.
And 99 Cents Only, which operates 371 locations, has a deep history.
“The stores date back to the 1960s when the company’s founder, Dave Gold, inherited a tiny liquor store in downtown Los Angeles and decided to run a test by selling bottles of wine at a fixed price-point of 99 cents.
The test was an instant success. Dave thought selling everything in the store for 99 cents would be hugely popular,” the company shared on its website.
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Also Read: A Giant Company Now Announces Unexpected Layoffs in Virginia
Other Economy News Today
A massive health company is now laying off workers as it plans to relocate a major facility to North Carolina, according to a WARN notice.
Pharmaceutical giant Pfizer will lay off a total of 119 workers this spring at a manufacturing facility in south Everett, according to a notice filed with the state.
Last month, Pfizer said it planned to “wind down construction” at the Seagen facility at 215 Shuksan Way.
At the time, the company said plant workers would be “impacted,” but did not say if they’d be laid off.
According to the WARN notice posted Wednesday, Pfizer will close the facility and lay off 119 plant workers with layoffs starting on June 3rd.
“This decision is not a reflection on the performances of our colleagues but is in alignment with our site capacity design to meet the needs of the business,” Pfizer said Wednesday in an email to The Daily Herald.
“We will make every effort to place impacted colleagues within open roles at the Bothell site.”
The massive 270,000-square-foot facility was originally being built for Seagen, the Bothell-based drug development firm.
In August 2023, Seagen signed a $215 million deal with contractor Skanksa to complete the plant by the end of this year.
The cancer-drug developer firm had planned to employ up to 200 people at the facility and manufacture medicine for clinical trials and the commercial market.
Plans changed, however, when Pfizer acquired Seagen for $43 billion in December. The purchase included the Seagen facility that is still under construction.
Instead of Everett, Pfizer will manufacture most of the products at a plant in North Carolina, the company said.
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Also Read: Millions May Now See Higher Social Security Money Checks
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