According to The Street, In the world of retail, when a chain hires a liquidation firm, it often signals the end of the line. Although some brands may resurrect in a different form later on, it typically follows a lengthy process of exhaustion for the original business. Once a company opts for liquidation, it has usually explored every avenue to keep its doors open, from seeking new funding to finding buyers for its assets.
Take David’s Bridal, for example. The company filed for Chapter 11 bankruptcy but was ultimately rescued by an investor willing to take over the brand. Unfortunately, this was not the case for other well-known retailers like Christmas Tree Shops, Tuesday Morning, and Bed Bath & Beyond, all of which sought various options but ended up liquidating their assets and closing their stores permanently.
99 Cents Only Stores: A Wind Down in Progress
The latest to follow this trend is 99 Cents Only Stores, which announced plans to wind down its operations and close all locations in an April 4 statement on its website. The company has engaged Hilco Global, a liquidation firm, to manage the sale of its remaining merchandise and dispose of store fixtures and equipment. Liquidation sales were set to begin on April 5, 2024, across all 371 locations.
In addition to closing stores, 99 Cents Only is also taking steps to sell off its real estate assets in Arizona, California, Nevada, and Texas, as announced in their statement.
Founded in 1982, 99 Cents Only has a unique standing among low-cost retailers, offering fresh produce and a variety of name-brand items. The chain has a deep-rooted connection to the communities it serves, making its potential closure even more impactful.
A Glimmer of Hope: Potential Rescue Efforts
However, there may be a lifeline for 99 Cents Only. Mark J. Miller, a former executive at Big Lots and Pic ‘N’ Save, is leading a consortium of investors hoping to save 143 of the Southern California locations. Miller’s group includes former executives from 99 Cents Only, and they plan to rebrand the stores with an emphasis on a “treasure hunt” shopping experience.
Since the company has filed for Chapter 11 bankruptcy, any sale would need court approval. In previous cases like that of David’s Bridal, bankruptcy courts have typically favored bids that keep stores operational.
“This is a passion project for me because I believe in this iconic brand and its connection to Southern California,” Miller told Los Angeles Magazine. He has spent approximately 90 days preparing a bid to acquire the company, emphasizing the importance of these stores for their communities.
“This group of customers is priced out of other chains,” Miller noted. “It stretches their buying power, especially today. That’s why this matters so much to me.”
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