99 Cents Only Stores closes all of its stores due to high inflation and theft

All 371 stores will close as a result of the decision.

The retailer 99 Cents Only Stores announced that it will close all 371 stores across Arizona, Texas, Nevada and California. The company has already begun winding down its business operations, including in-store sales.

The reasons that led the management of 99 Cents Only Stores to make this drastic decision range from the company's poor financial situation to theft. Interim CEO Mike Simoncic listed the reasons in a statement:

This was an extremely difficult decision and is not the outcome we expected or hoped to achieve," said Simoncic. "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. We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades.

Executives spent months looking for an alternative solution that would save the company from having to close down, but they were unsuccessful:

99 Cents Only Stores, together with its financial and legal advisors, engaged in an extensive analysis of all available and credible alternatives to identify a solution that would allow the business to continue. 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.

99 Cents Only Stores joins other retailers that have had to close due to high inflation. In March, Family Dollar and Dollar Tree announced they will liquidate inventory at more than 1,000 locations over the next few years. Macy's also reported that it will close 150 underperforming stores.