99 Cents Only Stores is filing for bankruptcy
99 Cents Only stores has filed for Chapter 11 bankruptcy protection.
That comes just days after the deep discount retailer said it was going out of business and would be closing all of its 371 U.S. locations across California, Texas, Arizona, and Nevada.
As part of the wind down, the company plans to sell its real estate and remaining inventory, which includes furnishings and equipment.
99 Cents has secured a bankruptcy loan that will supply it with $35.5 million in new money, the company said in a statement on Monday.
The company, founded in 1982, once offered an assortment of groceries, beauty products, and household supplies at a steep discount.
Mike Simoncic, the interim CEO of 99 Cents Only Stores, said last week that the company made the “extremely difficult decision,” to shut down after it had struggled to navigate shifting consumer demand, constant inflationary pressures and the lingering impacts of the covid-19 pandemic.
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