It came as a shock to the Los Angeles community when it was announced that the SoCal famous chain of 99 Cents Only Stores were closing all locations. Although the prices had inflated with the current economy, the stores are still a go-to for many low-income families and those looking to shop on a budget.
Number Holdings, Inc., the direct parent company of 99 Cents Only Stores LLC (the “Company” or “99 Cents Only Stores”) announced that it filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (“Chapter 11”) on April 7th.
Los Angeles Mayor Karen Bass announced today that the City is taking action to provide resources to support workers who will be impacted by the closure of 99 Cents Only Stores in Los Angeles over the coming weeks. There are more than 30 stores within the City limits. The Economic and Workforce Development Department (EWDD) has already activated its Rapid Response Team to support the effort.
“I am directing City departments to help make resources and support available to workers who will be impacted by these closures in the coming weeks,” said Mayor Bass. “We must do all we can to support Angelenos during this difficult time.”
At the Mayor’s direction, the City will be taking the following actions to support impacted workers:
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Offering daily virtual Rapid Response presentations to help workers make sense of available supports like Unemployment Insurance and help to ease the transition. Sign up for English presentations here and Spanish presentations here.
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The City’s 14 WorkSource Centers are available to answer questions about being laid off and future employment opportunities. See a list of the WorkSource Centers and contact information in English here and Spanish here.
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The Mayor’s Office of Community Engagement and the City’s Economic and Workforce Development Department Rapid Response Team will be sharing resources with employees at closing stores in the city to make information and materials available to all employees.
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Coordinating with the County of Los Angeles to ensure information and resources are available to all 99 Cents Only Stores workers across the Los Angeles region.
The Mayor’s Office will continue to monitor the situation and determine any next steps to support impacted workers during this transition.
The store’s parent company has secured $60.8 million in senior secured super priority debtor-in-possession financing consisting of $35.5 million in new money to be provided by an entity affiliated with certain of the Company’s existing stakeholders, subject to court approval, to facilitate the wind-down and pursue a value maximizing sale of its real estate and other assets.
The Company has filed customary motions with the Court to support its operations through the wind-down process, including payment of employee wages.
To date, all 99 Cents Only Stores remain open, and the Company has commenced going out of business sales at all 371 store locations, offering customers significantly reduced prices on a wide range of products.
Rumor in headlines surfaced that a former President or group of investors hoped to save the chain, but nothing has been confirmed.
