99 Cents Only Stores

For 99¢ stores in general, see Variety store.

99 Cents Only Stores LLC

Company type	Private
Industry	Discount, variety store
Founded	1982 Los Angeles, California
Founder	Dave Gold
Defunct	2024
Headquarters	Commerce, California , United States
Number of locations	371 (at the announcement of its eventual closure)
Area served	United States (locations in California, Texas, Arizona, and Nevada)
Key people	Barry J. Feld, CEO Mike Simoncic, Interim CEO Jesse Allen, COO Perry Pericleous, CFO
Revenue	$2.06 billion (2017)
Operating income	$53 million (2017)
Net income	$118 million (2017)
Total assets	$662.87 million (2009)
Total equity	$523.85 million (2009)
Owner	Ares Management CPP Investment Board
Number of employees	14,000 (2024)
Website	99only.com

99 Cents Only Store in Dallas

99 Cents Only Stores (also branded as The 99 Store ) was an American price-point retailer chain based in Commerce, California, United States of America. It offered "a combination of closeout branded merchandise, general merchandise and fresh foods." The store initially offered all products for 99¢ or less. The base price became 99.99¢ in 2007 and products were later introduced at higher prices.

Founded by Dave Gold in 1982, the retailer chain has locations in California, Arizona, Nevada, and Texas. The company also operates Bargain Wholesale, which sells wholesale to retailers across the United States and exports to more than 15 countries from showrooms in Los Angeles. It also exhibits at trade shows in Las Vegas and Chicago. The company announced all stores would close beginning April 5, 2024 and culminate on June 3, 2024 due to financial hardship.

History

99 Cents Only Store, North Hollywood, California

Early history

99 Cents Only Stores dates back to the 1960s when the company’s founder, Dave Gold, inherited a liquor store in downtown Los Angeles and decided to run a test by selling bottles of wine at a fixed price-point of 99 cents. The test was successful, and Dave thought that selling everything in the store for 99 cents would be hugely popular.

"Whenever I'd put wine or cheese on sale for $1.02 or 98 cents, it never sold out," Gold said in a 2001 interview with The Los Angeles Times. "When I put a 99 cent sign on anything, it was gone in no time. I realized it was a magic number."

On a "lucky" Friday on August 13, 1982, Dave and Sherry Gold opened the first 99 Cents Only Store in Los Angeles. To celebrate the grand opening, Dave decided to sell television sets for only 99 cents to the first 13 families. More than 300 people showed up to stand in line and wait for the store to open. The huge line caught the media’s attention and more than 10 TV outlets covered the store’s first day. The success of the first grand opening inspired a tradition, with new stores continuing for years to offer 99-cents deals for televisions and other products.

In 1996, a decision was made taking the company public. However, Dave Gold insisted that the offering price end in 99 cents. "We weren't even sure that the FTC would allow it," said Jeff Holmes, whose firm managed the IPO.

2000s

In November 2003, a more flexible pricing structure was implemented with items being sold for prices lower than 99 cents (for example 69 or 49 cents). The management believed that it would permit better management of commodity price increases.

In September 2007, the company raised its prices by $0.0099 (about 1%, or from 99 cents to 99.99 cents)—the first increase in the history of the franchise—to combat "dramatically rising costs and inflation." The store carries some items which are over the .9999 price point; such as $1.99 and $2.99.

Despite having announced on September 18, 2008 that the company would close all stores in Texas, in February 2009, the company decided that it would close only one-third of its Texas stores. The company quoted a rise in sales and made plans to keep the stores open, as long as the stores remain profitable.

2010s

99 Cents Only store in Ontario, California with The 99 Store branding

In October 2011, the company agreed to a $1.6-billion buy-out by private equity firm Ares Management and the CPP Investment Board. The deal was completed on January 13, 2012. The new owners decided to lay off over 172 employees in October 2013. The Gold family ended their involvement with the company in January 2013 and Dave Gold died on April 22, 2013.

99 Cents Only store having a liquidation sale in Reseda, Los Angeles

2020s

In September 2023, 99 Cents Only Stores announced that they sold their Los Angeles County warehouse. In October 2023, Fitch Ratings reported that 99 Cents Only Stores was nearing a potential Chapter 11 bankruptcy filing.

On March 28, 2024, the company warned that it may be forced to file for Chapter 11 bankruptcy within weeks as it faces a liquidity shortfall and a stalled-asset sale. It also began talks referring to liquidation.

On April 4, 2024, 99 Cents Only Stores announced that it would permanently close all of its remaining 371 locations and lay off its 14,000 employees within the coming months, with liquidation sales to be held by Hilco Global. "Going out of business" sales began at all locations on April 5, with stores expected to complete liquidation sales by June. The company blamed the effects of the COVID-19 pandemic, increasing inflation, and shifting consumer demand.

On April 8, 2024, 99 Cents Only Stores filed for Chapter 11 bankruptcy, listing total liabilities and assets between $1 billion and $10 billion. The company also stated that it has gathered $60 million to facilitate its shutdown process, and is also planning on a sale on its assets and leases.

Possible acquisition of Southern California stores

On April 7, 2024, Mark J. Miller, CEO of Pic 'N' Save Bargains and former president of Big Lots, is planning to save the discount chain after the company announced it was closing all stores and winding down its business operations in California, Texas, Arizona and Nevada. Miller said he has put together a group of investors, including some former 99 Cents Only Stores executives, to try to acquire the Southern California stores and continue the chain's commitment to the community. The affected stores would temporarily close for up to 90 days after liquidation sales are complete to make way for renovations and restocking, and then reopen soon after.

In popular culture

99 Cents Only Stores advertised that it was open "9 days a week", often invoking humorous commentary on holidays with products sold for 99 cents. One advertisement wished Joan Rivers a "Happy 99th Facelift", another congratulated the "(Los Angeles) Dodgers on Losing 99 Games." The company also celebrates the 99th birthday of public figures and names 99-year-old individuals as honorary spokespersons for 99 Cents Only Stores.

99 Cent II Diptychon by Andreas Gursky became, at the time of its sale in February 2007, the most expensive photograph, at $3.3 million.

99 Cents Only Stores allows returns of up to nine items within nine days of purchase and are typically open from 9 a.m. to 9 p.m., although individual stores may open at 8 a.m. or close at 10 p.m. The store mottos include: "Do the 99", "Low prices are born here, and raised elsewhere", featuring a picture of a baby chick.

A 99 Cents Only store was featured in scenes in the 2002 movie Punch-Drunk Love. A parody of 99 Cents Only Stores, 69 Cent Stores, is featured in Grand Theft Auto: San Andreas.

In 2016, late night talk show Jimmy Kimmel Live! aired a sketch parodying the 99 Cents Only Store called The 50 Cent Store featuring American rapper Curtis "50 Cent" Jackson.

External links

• Official 99¢ Only Stores website
• Coffey, Brendan (September 30, 2002). "Every penny counts". Forbes. Archived from the original on February 7, 2003.
• Brott, Tamar (August 2001). "The Price is Right: Why Wall Street Loves Dave Gold's 99 Cent Only Empire". Los Angeles Magazine. Vol. 46, no. 8. pp. 42, 44, 46, 48, 50, 52, 54. ISSN 1522-9149.