Investor group trying to save SoCal’s 99 Cents Only stores
COMMERCE – As shoppers flock to area 99 Cents Only stores to stock up one last time before the doors shutter permanently, a former president of Big Lots and the original Pic `N’ Save brand has launched an effort to save the 143 outlets located in Southern California, Los Angeles Magazine reported.
`It’s a passion for me to try and do this deal because I think it’s such an iconic brand name and has such a great feel for Southern California,” Mark J. Miller told the magazine Friday.
Image: 99 Cents Only stores website
Miller said he has put together a group of investors, including some former 99 Cents Store executives, to try to acquire the Southern California stores, close them for about 90 days after the going-out-of-business sales end and then reopen with an emphasis on the “treasure hunt” style that the stores popular in the first place.
He said the group believes it is crucial to the communities of Southern California that 99 Cents Only stores continue to exist, Los Angeles magazine reported.
`This group of customers is priced out of other chains,” Miller said. “It stretches their buying power. Especially today. That’s why this is a passion for me.”
Miller is currently the president and CEO of Pic `N’ Save Bargains, which operates one store each in Anaheim and Whittier and was a friend of 99 Cents Stores founder Dave Gold, who died in 2013, and his family.
Meanwhile, parking lots at most Los Angeles-area 99 Cents Stores were jammed Friday as liquidation sales began with everything marked 30% off.
“It’s sad because 99 Cent has been providing and helping all of us for years,” shopper Elizabeth Gonzales told Fox11. “Anything that we need we just come here and shop and its cheaper. And you know … it’s a good deal.”
The Commerce-based company announced Thursday that it was closing all 371 of its 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. “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.”
In addition to the effort to reopen some stores, two Southland elected officials are exploring options to provide support for employees who will soon find themselves out of work.
Los Angeles City Councilman Tim McOsker said he has 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 including assistance with unemployment insurance benefits and help finding new jobs.
“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.
Los Angeles County Supervisor Janice Hahn said she would introduce a motion during Tuesday’s board meeting asking for a report on ways the county can provide support for displaced workers from the chain.
“I am worried about the thousands of 99 Cents Store workers across L.A. County who are going to lose their jobs, but L.A. County is ready to help,” Hahn said in a statement Friday. “We have a department that can step in during an event like this and help workers with not only short-term assistance to get through this difficult time, but job training and support to help them get a better job.”
Her motion will request a report within 60 days from the county departments of Economic Opportunity and Consumer and Business Affairs. (CNS)
