Like many retailers emerging out of the pandemic, the West Coast chain has struggled with rising costs and shrink - which is higher merchandise losses from customer errors, damage, internal losses and shoplifting.
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"This was an extremely difficult decision and is not the outcome we expected or hoped to achieve," said Mike Simoncic, interim chief executive officer of 99 Cents, in the release. "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."
The company said it has entered into an agreement with financial services company Hilco Global to liquidate its merchandise, starting Friday. It will also work with the firm to get rid of fixtures, furnishings and equipment at its 371 stores.
Hilco Real Estate will manage the sales of its store locations in the four states.
Simoncic will step down from his role, the company said, and Chris Wells will serve as chief restructuring officer.
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Bloomberg reported last week that 99 Cents was considering a bankruptcy filing.
99 Cents Only is closing all stores and winding down its business operations
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