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99 Cents Only hits end of the road

A 99 Cents Only store is seen in Los Angeles, California, on April 5, 2024.

A 99 Cents Only store in Los Angeles. Photo: Robyn Beck/AFP via Getty Images

After years of struggles, 99 Cents Only Stores has filed for bankruptcy and will wind down operations.

Why it matters: The discounter has been floundering for years, and couldn't fight the inevitable any longer

Zoom in: Chris Wells, managing director at Alvarez & Marsal, will serve as chief restructuring officer during the wind-down, which a statement said began on April 5. Interim CEO Mike Simoncic, also a managing director at Alvarez & Marsal, will step down.

  • 99 Cents Only secured $60.8 million in DIP financing, per Bloomberg.

Flashback: The company's troubles have been going on for years, having completed at least two debt restructurings before the pandemic.

  • Ares Capital and CPPIB acquired the company for $1.6 billion in 2012.

The bottom line: A favorable economy for discounters can't overcome operating performance failures.

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