BIG UPDATE: After Chapter 11 bankruptcy filing, retail chain may get lifeline
When a retail chain engages a liquidation firm, it typically signals the end of the road. While some brands may return in a different form, such as David’s Bridal, many well-known retailers like Christmas Tree Shops, Tuesday Morning, and Bed Bath & Beyond have closed their doors permanently after hiring liquidation firms to manage asset sales.
Currently, 99 Cents Only Stores appears to be on a similar path as it has enlisted Hilco Global, a liquidation firm, to assist in winding down operations. However, recent developments suggest that this may not be the final chapter for the chain.
Plans for Wind-Down Operations
On April 4, 2024, 99 Cents Only announced plans to liquidate and close all its stores, stating on its website, “The company has entered into an agreement with Hilco Global to liquidate all merchandise owned by the company and dispose of certain fixtures, furnishings, and equipment at the company’s stores.” The liquidation sales commenced on April 5, 2024, affecting all 371 store locations.
In addition to liquidating merchandise, the bankrupt chain is also working to sell its real estate assets, with Hilco Real Estate managing the sale of properties in California, Texas, Arizona, and Nevada.
Founded in 1982, 99 Cents Only Stores has a unique connection to its communities, offering a diverse range of products, including fresh produce, which sets it apart from traditional dollar stores.
Also Read – Struggling Beverage Retailer Files for Chapter 11 Bankruptcy Protection
A Possible Rescue for 99 Cents Only Stores
In a surprising turn of events, former value retail executive Mark J. Miller is leading a consortium aiming to save 143 stores in Southern California. With a background as the former president of Big Lots and Pic ‘N’ Save, Miller is working with a group of investors and former executives from 99 Cents Only to acquire the stores and potentially rebrand them with a focus on a “treasure hunt” shopping experience.
Miller has spent about 90 days putting together his bid, knowing that any sale would need court approval due to the Chapter 11 bankruptcy filing. Historically, bankruptcy courts have favored bids that keep stores operational, much like what happened with David’s Bridal.
“This is a passion project for me because I believe in the brand and its significance to Southern California,” Miller said in an interview with Los Angeles Magazine. He emphasizes the vital role these stores play in their communities, especially for customers who cannot afford to shop at more expensive retailers.
Miller added, “This group of customers is priced out of other chains. It stretches their buying power, particularly in today’s economic climate. That’s why this is so important to me.”
As 99 Cents Only Stores navigates this challenging period, the future remains uncertain, but there’s hope that a new direction may be on the horizon.
