California-based 99 Cents Only Stores said Friday it will close all 371 of its outlets, among them the Gardena store at the corner of Normandie Avenue and Redondo Beach Boulevard.
The announcement that the chain would be closing all 371 of its stores came on Friday, April 5 and the following weekend brought with it a “liquidation sale” which items reduced by between 10 and 30 percent. The company was founded 42 years ago.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said interim CEO Mike Simoncic, in a statement. “We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades.”
The company cited COVID-19, product shrink (essentially shoplifting), changes in customer demand, and inflation among the main reasons for the closures.
“Following months of actively pursuing these alternatives, the company ultimately determined that an orderly wind-down was necessary and the best way to maximize the value of 99 Cents Only Stores’ assets,” the company said.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” added the departing Simoncic. “Unfortunately, the last several years have presented significant and lasting challenges in the retail environment.”
However, according to CNN the company hasn’t been profitable since 2015.
“The company struggled to keep up with larger rivals such as Walmart, Costco and Dollar General, and it lost money every year beginning in 2016,” CNN said. “While competitors expanded, 99 Cents Only’s high debt load left it unable to invest to improve stores, its supply chain or digital strategy.”
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