Discount retailer 99 Cents Only filed for Chapter 11 bankruptcy protection on Sunday after announcing that it would close all of its 371 stores across the United States.

99 Cents Only Stores Permanently Closing

According to Reuters, Interim CEO Mike Simoncic announced the company's impending closure late last week. He said in a statement that it was an " extremely difficult decision and is not the outcome we expected or hoped to achieve." 

The 99 Cents Only has been the go-to place for bargain-conscious consumers as it offers everyday household essentials, basic groceries, and other items, much of which were priced at or below 99 cents. 

At the time of the bankruptcy filing, the company, headquartered in Tustin, California, had more than 10,800 part-time and full-time workers. 

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99 Cents Only Files Chapter 11 Bankruptcy Protection

In its Chapter 11 bankruptcy filing, the company said it plans to sell its real estate and remaining inventory. It has arranged a $35.5 million bankruptcy loan to provide new funding.

According to court documents filed on Monday in Wilmington, Delaware, bankruptcy court, 99 Cents Only plans to close 125 stores by April 30 and the remaining locations by May 31.

The company hired Hilco Global to assist in managing its going-out-of-business sales and liquidating real estate. According to its Chapter 11 petition, 99 Cents Only has more than $1 billion in assets and liabilities. 

The company noted that inflation had made its business model hard to sustain. The 99 Cents Only stores would offer up to 30% discounts on the remaining inventory and honor existing gift cards and merchandise credits until April 19.

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