99 Cents Only Stores

99 Cents Only Stores LLC

File:99 Cents Only Stores logo.svg Logo used until 2024
Company type	Private
Industry	Retail (discount variety stores)
Founded	August 13, 1982 (1982-08-13) in Inglewood, California, U.S.
Founder	Dave Gold
Defunct	June 3, 2024 (2024-06-03)
Fate	Liquidation and store closures; filed for Chapter 11 bankruptcy protection in 2024
Headquarters	Commerce, California , United States
Area served	California, Arizona, Nevada, Texas (until closure)
Key people	Barry J. Feld (CEO), Perry Pericleous (CFO)
Products	Closeout branded products, everyday goods, fresh food items
Number of employees	Approximately 14,000 (at closure)
Parent	Ares Management and CPP Investment Board (from 2012)

99 Cents Only Stores LLC—also referred to as The 99 Store—was a price-point retail chain based in the United States, with its headquarters located in Commerce, California. Established in 1982 by entrepreneur Dave Gold, the company specialized in offering closeout branded products, everyday goods, and fresh food items. Initially, every product was priced at 99¢ or less; however, in 2007, the base price was adjusted to 99.99¢, and the assortment expanded to include higher-priced merchandise.

The retailer operated 371 outlets throughout California, Arizona, Nevada, and Texas, catering primarily to budget-conscious shoppers through its discount variety store format. Beyond its retail operations, the firm managed Bargain Wholesale, a wholesale arm supplying retailers nationwide and exporting goods to over 15 countries via showrooms based in Los Angeles. Additionally, the company actively participated in prominent trade events held in Las Vegas and Chicago to broaden its market reach.

Although it generated revenues of $2.06 billion in 2017, the business encountered financial setbacks, including a net loss of $118 million during the same year. These challenges, compounded by evolving consumer preferences, inflationary pressures, and operational disruptions caused by the COVID-19 pandemic, culminated in an announcement to begin closing stores starting April 5, 2024. All locations were scheduled for closure by June 3, 2024. At the time of shutdown, CEO Barry J. Feld and CFO Perry Pericleous were among the company’s leading executives.

Early history

The roots of 99 Cents Only Stores extend back to the 1960s when founder Dave Gold took over a liquor outlet at Grand Central Market in downtown Los Angeles. Gold experimented with offering wine at a fixed price point of 99 cents and observed a significant increase in sales volume. He realized that setting a uniform price of 99 cents for all items would create a distinctive advantage within the discount retail sector.

On August 13, 1982, Dave and Sherry Gold inaugurated the first 99 Cents Only Store at 6921 La Tijera Boulevard in Inglewood, California, near LAX. To celebrate the opening, Dave sold televisions for just 99 cents to the first thirteen customers, attracting over 300 attendees and substantial media attention. This promotional tactic became a signature element of the brand’s marketing strategy.

The company went public in 1996 with an initial public offering (IPO) that featured an unconventional pricing approach: the share price concluded with .99 cents. This decision reinforced the brand’s dedication to its pricing philosophy and strengthened its market image. Jeff Holmes, who oversaw the IPO process, mentioned initial uncertainty regarding regulatory approval of this pricing method but ultimately it was permitted.

2000s

Starting in November 2003, the retailer introduced products priced below 99 cents (such as items costing 69 or 49 cents) as a response to rising commodity costs. Then in September 2007, it raised its base price slightly from 99 cents to 99.99 cents—the first price increase since inception—to cope with inflation and escalating expenses. Some products were priced above this threshold as well, including $1.99 and $2.99 offerings.

On September 18, 2008, the company declared plans to shut down all stores located in Texas but reversed this decision by February 2009, opting instead to close only one-third of those locations. This change was prompted by improving sales figures and a strategic focus on sustaining profitability within the Texas market.

2010s

In October 2011, a $1.6 billion acquisition of the company was agreed upon by private equity firm Ares Management and the CPP Investment Board, with the transaction finalized in January 2012. Subsequently, in October 2013, more than 172 staff members were dismissed. The Gold family's association with the business concluded in January 2013; founder Dave Gold passed away on April 22, 2013.

2020s

In September 2023, 99 Cents Only Stores divested its warehouse located in Los Angeles County. By October 2023, Fitch Ratings signaled that the company was approaching a possible Chapter 11 bankruptcy filing.

On March 28, 2024, the company announced an anticipated Chapter 11 filing within weeks, attributing this to cash flow challenges and halted asset transactions, alongside ongoing discussions about liquidation.

On April 4, 2024, the retailer declared it would shut down all 371 outlets permanently and lay off approximately 14,000 employees. Hilco Global was appointed to oversee liquidation sales. The company cited factors such as the COVID-19 pandemic, escalating inflation rates, and evolving consumer preferences as primary causes.

Liquidation sales commenced on April 5, with store closures projected by June. On April 8, 2024, the company officially filed for Chapter 11 bankruptcy protection, reporting assets and liabilities ranging between $1 billion and $10 billion. It secured $60 million in financing to facilitate the closure process and planned asset and lease dispositions.

Store acquisitions

On April 7, 2024, Mark J. Miller—CEO of Pic 'N' Save and former president of Big Lots—revealed intentions to rescue the discount chain following its decision to close all stores in California, Texas, Arizona, and Nevada. Miller gathered a consortium of investors, including former executives from 99 Cents Only Stores, aiming to acquire locations in Southern California to preserve the brand’s community presence. These stores were slated for temporary closure of up to 90 days after liquidation for renovation and restocking prior to reopening.

On May 24, 2024, Ollie's Bargain Outlet secured leases for 11 former locations of 99 Cents Only Stores and planned to reopen them under the Ollie’s brand by year-end.

On May 29, 2024, Dollar Tree acquired leases for as many as 170 closed stores across four states formerly operated by 99 Cents Only Stores. These sites are scheduled to reopen as Dollar Tree outlets beginning in Fall 2024.

In popular culture

99 Cents Only Stores often promoted itself with humor by claiming to be open "9 days a week," utilizing clever advertising linked to holidays or notable personalities. Campaigns included marking public figures’ 99th birthdays and appointing honorary spokespeople aged 99.

The chain inspired Andreas Gursky’s photographic work 99 Cent II Diptychon, which sold for $3.3 million in 2007, becoming the highest-priced photograph at that time.

Stores generally permitted returns of up to nine items within a nine-day period and operated mainly from 9 a.m. to 9 p.m., with some exceptions. Taglines included "Do the 99" and "Low prices are born here, and raised elsewhere," accompanied by a baby chick logo.

99 Cents Only Stores made appearances in media such as The Andy Dick Show, the movie Punch-Drunk Love, and was parodied in The Simpsons episode The Girl Who Slept Too Little. In 2016, Jimmy Kimmel Live! featured a parody called "The 50 Cent Store," starring rapper Curtis "50 Cent" Jackson.