Discount chain 99 Cents Only Stores is adding to the growing list of brick-and-mortar retail locations that will go dark this year, and most of its stores are in California.
The Commerce, California-based company has filed for Chapter 11 bankruptcy protection so it can wind down its operations and close 371 stores. The retailer has brick-and-mortar locations in California, Arizona, Nevada and Texas, and blames the economy, high inflation and theft for its financial woes.
Going-out-of-business sales have already kicked off at the stores. Hilco Global is assisting 99 Cents with the liquidation events. Hilco Real Estate Sales and Jefferies are managing the sale of the retailer's real estate assets. They've issued a bankruptcy-sale flyer on the portfolio, which includes 44 properties that 99 Cents owns, with the the rest leased.
In court filings, 99 Cents Only said by the end of the month it is looking to close about 125 stores and to shut the remaining 246 by May 31.
Some of the stores may survive, under new ownership. Mark Miller, the former president of Big Lots and current CEO of the California-based Pic 'N' Save chain, has said he's gathered investors wanting to acquire 143 of 99 Cents Only's brick-and-mortar locations in five counties in Southern California.