99 Cents Only Stores LLC (also branded as The 99 Store[1]) was a 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.[2] The base price became 99.99¢ in 2007 and products were later introduced at higher prices.
 | |
 | |
| Company type | Private |
|---|---|
| Industry | Discount, variety store |
| Founded | 1982, in Los Angeles, California, United States |
| Founder | Dave Gold |
| Defunct | June 5, 2024 |
| Headquarters | , 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 | |
| Revenue |  $2.06 billion (2017) |
 $53 million (2017) | |
| $118 million (2017) | |
| Total assets | $662.87 million (2009) |
| Total equity | $523.85 million (2009) |
Number of employees | 14,000 (2024) |
| Website | Archive of 99only.com |
Founded by Dave Gold in 1982, the retailer chain had locations in California, Arizona, Nevada, and Texas. The company also operated 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 exhibited at trade shows in Las Vegas and Chicago. The company announced all stores would close beginning April 5, 2024 and culminated on June 3, 2024 due to financial hardship.
History
edit
Early history
edit"99 Cents Only Stores" dates back to the 1960s when its founder, Dave Gold, inherited a liquor store in downtown Los Angeles, and experimented with selling bottles of wine at a fixed price-point of 99 cents. The test was successful, and Dave realized that selling everything in the store for 99 cents would make his business stand out.[3]
"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."[4]
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.[5] More than 300 people showed up in line, catching the attention of more than 10 TV outlets covering the store’s first day. Inspired by the first grand opening, new stores began offering 99-cents deals for televisions and other products.[3]
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.[6]
2000s
editIn November 2003, the store began selling items for lower than 99 cents (e.g. 69 or 49 cents). The management believed that it would permit better management of commodity price increases.[7]
In September 2007, the company raised its prices by $0.0099 (from 99 cents to 99.99 cents), marking the first increase in the history of the franchise—to combat "dramatically rising costs and inflation."[8][9] The store carries some items which are over the .9999 price point; such as $1.99 and $2.99.
On September 18, 2008, it was announced that the company would close all stores in Texas, but in February 2009, the company decided on closing just one-third of its Texas stores. The company quoted a rise in sales, promising to keep the stores open, as long as they remain profitable.[8][10]
2010s
edit
In October 2011, the company agreed to a $1.6-billion buy-out by private equity firm Ares Management and the CPP Investment Board.[11] The deal was completed on January 13, 2012. The new owners decided to lay off over 172 employees in October 2013.[12] The Gold family had ended their involvement with the company in January 2013 and Dave Gold died on April 22, 2013.
2020s
editIn September 2023, 99 Cents Only Stores announced that they sold their Los Angeles County warehouse.[13] In October 2023, Fitch Ratings reported that 99 Cents Only Stores was nearing a potential Chapter 11 bankruptcy filing.[14]
On March 28, 2024, the company warned that it may be forced to file for Chapter 11 bankruptcy within weeks as it faced a liquidity shortfall and a stalled-asset sale. It also began talks referring to liquidation.[15]
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.[16] "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.[17]
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 also planned on a sale on its assets and leases.[18]
Store acquisitions
editOn April 7, 2024, Mark J. Miller, CEO of Pic 'N' Save Bargains and former president of Big Lots, planned 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.[19]
On May 24, 2024, Ollie's Bargain Outlet announced that they would be acquiring 11 former 99 Cents Only leases, most of which are set to open by the end of 2024.[20]
On May 29, 2024, Dollar Tree announced that they would be purchasing leases of up to 170 of closed 99 Cents Only locations across 4 states. The company will reopen the closed locations as Dollar Tree stores beginning in Fall 2024.[21]
In popular culture
edit99 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."[4] The company also celebrated the 99th birthday of public figures and named 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.[22]
99 Cents Only Stores allowed returns of up to nine items within nine days of purchase and were typically open from 9 a.m. to 9 p.m., although individual stores could open at 8 a.m. or close at 10 p.m. The store mottos included: "Do the 99", "Low prices are born here, and raised elsewhere", featuring a picture of a baby chick.[23]
A 99 Cents Only Store was used as the filming location of the Fear parody from The Andy Dick Show where it was referred to as the 98 Cent Plus 1 Only Store.
A 99 Cents Only store was featured in scenes in the 2002 movie Punch-Drunk Love.[24]
In 2005 it was parodied in The Simpsons's episode The Girl Who Slept Too Little as 99¢ Shrink .
In 2016, late night talk show Jimmy Kimmel Live! parodied the 99 Cents Only Store, airing an image of "The 50 Cent Store" that features American rapper Curtis "50 Cent" Jackson.[25]
References
edit- ^ "Bring Home More! Redeem This Coupon at the 99 Store". 99 Cents Only Stores. Archived from the original on September 21, 2021. Retrieved September 21, 2021.
- ^ Chang, Andrea (July 22, 2010). "99 Cents Only Stores sued over price increase". Los Angeles Times. Archived from the original on May 1, 2011. Retrieved November 21, 2010.
- ^ a b "About Us | 99 Cents Only Stores". 99only.com. Archived from the original on April 26, 2024. Retrieved April 26, 2024.
- ^ a b Li, Shan (April 26, 2013). "Dave Gold dies at 80; entrepreneur behind 99 Cents Only chain". Los Angeles Times. Archived from the original on December 22, 2015. Retrieved December 20, 2015.
- ^ Chang, Andrea; Darmiento, Laurence (April 10, 2024). "99 Cents Only was an L.A. icon. Inside the fall of the popular chain". Los Angeles Times. Retrieved April 10, 2024.
- ^ Brott, Tamar (August 1, 2001). "The Price Is Right". Los Angeles Magazine. 46 (8): 42, 44, 46, 48, 50, 52, 54. ISSN 1522-9149. Archived from the original on April 5, 2024. Retrieved April 5, 2024.
- ^ "99 Cents Only Stores(R) Announces a $5.2 Million Loss for the Second Quarter of Fiscal 2008 Ended September 30, 2007". Business Wire (Press release). November 8, 2007. Archived from the original on February 27, 2011. Retrieved May 17, 2015.
- ^ a b Welch, Creighton A. (September 18, 2008). "99 Cents Only closing all its Texas stores". San Antonio Express-News. Archived from the original on September 20, 2008.
- ^ Jinks, Beth & Burke, Heather (September 8, 2008). "99 Cents Only Stores Raises Top Price to 99.99 Cents (Update2)". Bloomberg. Archived from the original on June 20, 2015.
- ^ Halkias, Maria (February 4, 2009). "99 Cents Only Stores to stay open in Texas after all". Dallas Morning News. Archived from the original on April 4, 2009.
- ^ Chang, Andrea & Li, Shan (October 12, 2011). "99 Cents Only Stores agrees to .6-billion buyout". Los Angeles Times. Archived from the original on October 19, 2011. Retrieved October 17, 2011.
- ^ "99 Cents Only Stores: NYSE:NDN quotes & news - Google Finance". Google Finance. Archived from the original on May 19, 2015. Retrieved May 17, 2015.
- ^ "99 Cents Only Stores Sells Los Angeles County Warehouse". CoStar. September 13, 2023. Retrieved October 3, 2023.
- ^ "11 retailers at risk of bankruptcy in 2023". Retail Dive. October 2, 2023. Archived from the original on October 2, 2023. Retrieved October 3, 2023.
- ^ "Retailer 99 Cents Is Mulling a Potential Bankruptcy Filing". Bloomberg. March 28, 2024. Archived from the original on March 28, 2024. Retrieved March 28, 2024.
- ^ Chang, Andrea; Darmiento, Laurence (April 5, 2024). "99 Cents Only to close all 371 stores and wind down its business". Los Angeles Times. Archived from the original on April 5, 2024. Retrieved April 5, 2024.
- ^ Maruf, Ramishah (April 4, 2024). "99 Cents Only Stores is winding down its business operations". CNN. Archived from the original on April 5, 2024. Retrieved April 4, 2024.
- ^ "99 Cents Only Stores Goes Bankrupt as Inflation Keeps Biting". Bloomberg Law. April 8, 2024. Archived from the original on April 9, 2024. Retrieved April 8, 2024.
- ^ Youngman, Sam (2024). "Investor Group Looks to Save the 99 Cents Only Stores in Southern California". Los Angeles Magazine. Archived from the original on April 7, 2024. Retrieved April 7, 2024.
- ^ Russell, Zachary (May 24, 2024). "Ollie's acquires 11 former 99 Cents Only locations". Chain Store Age. Archived from the original on May 31, 2024. Retrieved May 30, 2024.
- ^ Meyersohn, Nathaniel (May 29, 2024). "Dollar Tree is moving into 99 Cents Only stores". CNN. Archived from the original on May 30, 2024. Retrieved May 30, 2024.
- ^ Schonauer, David (March 7, 2007). "The First $3M Photograph". PopPhoto.com. Archived from the original on March 18, 2007. Retrieved August 3, 2017.
- ^ "99 Cents Only Stores Slogan - Slogans for 99 Cents Only Stores - Tagline of 99 Cents Only Stores - Slogan List". www.sloganlist.com. Archived from the original on September 16, 2020. Retrieved May 30, 2020.
- ^ Levine, Bettijane (January 4, 2003). "Buy low, live high". Los Angeles Times. Archived from the original on December 11, 2015. Retrieved November 9, 2018.
- ^ "50 Cent Opened Up a 50 Cent Store For All of Your Back to School Needs". E! Online. August 24, 2016. Archived from the original on April 1, 2022. Retrieved April 1, 2022.
External links
edit
- 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.