LOS ANGELES — A day after Commerce-based operators of 99 Cents Only Stores announced it will shutter all 371 of its locations, Los Angeles City Councilman Tim McOsker took steps Friday to aid impacted employees in the Harbor area.
“99 Cents Only stores serve an important role in our communities’ business districts,” McOsker said in a statement. “In the 15th District we have three, in Harbor City on Pacific Coast Highway, in Wilmington on Anaheim St., and in San Pedro on Gaffey St.”
He called these stores a “lifeline” for lower income residents of the Harbor area while employing many residents. McOsker said the closure of 99 Cents Only stores will be “felt by our district.”
The councilman said he’s been in communication with the city’s Economic Workforce Development Department and asked them to deploy a rapid response team to provide these workers with a range of resources, such as assistance with unemployment insurance benefits and helping them find a new job.
“We will do our best to mitigate the negative impacts of these layoffs and to support the workers, their families and our communities,” McOsker said.
On Thursday, the operators announced they would shutter its locations and began liquidation sales Friday. The move is expected to impact all company locations in California, Arizona, Nevada and Texas.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” interim company CEO Mike Simoncic said in a statement issued Thursday. “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.”
According to the company, it has partnered with Hilco Real Estate to facilitate a liquidation of all merchandise, along with “certain fixtures, furnishings and equipment at the company’s stores.”
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The 99 Cents Only stores were founded in 1982.
Company officials said they conferred with financial and legal advisers in hopes of finding a way to continue operating.
“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,” according to a company statement.
