New York
CNN
—
99 Cents Solely Shops — a reduction chain in California, Texas, Arizona and Nevada — is winding down its enterprise operations, in keeping with a press release from the corporate on Thursday.
Like many retailers rising out of the pandemic, the West Coast chain has struggled with rising prices and shrink — which is greater merchandise losses from buyer errors, injury, inner losses and shoplifting.
“This was a particularly tough resolution and isn’t the end result we anticipated or hoped to realize,” stated Mike Simoncic, interim chief government officer of 99 Cents, within the launch. “Sadly, the final a number of years have introduced important and lasting challenges within the retail setting, together with the unprecedented affect of the COVID-19 pandemic, shifting shopper demand, rising ranges of shrink, persistent inflationary pressures and different macroeconomic headwinds, all of which have tremendously hindered the corporate’s capacity to function.”
The corporate stated it has entered into an settlement with monetary companies firm Hilco International to liquidate its merchandise. It should additionally work with the agency to do away with fixtures, furnishings and gear at its 371 shops.
Hilco Actual Property will handle the gross sales of its retailer places within the 4 states.
Simoncic will step down from his function, the corporate stated, and Chris Wells will function chief restructuring officer.
Bloomberg reported final week that 99 Cents was contemplating a chapter submitting.