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The 5 Shocking Reasons Why 99 Cents Only Stores Closed All 371 Locations (And What Happens Next)

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The iconic 99 Cents Only Stores, a discount retail staple for over four decades, officially announced the closure of all 371 locations in April 2024, shocking consumers and the industry alike. The wind-down of the business, which had become synonymous with deep value across the Southwestern United States, marked the end of an era that began with a visionary idea in 1982.

As of late December 2025, the final stages of the company's orderly liquidation are complete, with liquidation sales culminating in June 2024 and a massive sell-off of leases and assets. The collapse of the beloved "99" chain was not due to a single failure, but rather a perfect storm of macroeconomic pressures and internal struggles that made the original 99.99 cent price point untenable.

The Visionary Behind the Price Point: Founder Dave Gold

The story of the 99 Cents Only Stores is inextricably linked to its founder, Dave Gold, a man who built a retail empire on a simple, fixed-price concept. Gold's journey from a small liquor store owner to a retail titan provides a crucial context for the brand’s initial success and enduring legacy.

  • Full Name: Dave Gold (David Gold)
  • Born: June 5, 1932, in Cleveland, Ohio
  • Died: April 22, 2013, at age 80 in Los Angeles, California
  • First Store: Gold reportedly first tested the concept by selling wine glasses for 99 cents at his liquor store.
  • Founding Date: Friday, August 13, 1982
  • First Location: Opened the first 99 Cents Only Store in Los Angeles, California.
  • Initial Success: The first day of business reportedly generated $500 in sales in just a few hours, proving the concept’s viability.
  • Retirement/Sale: Gold and his family sold the company to a private equity consortium, including Ares Management and the Canada Pension Plan Investment Board, in 2012 for approximately $1.6 billion.

Dave Gold’s commitment to the price point—a fixed price of 99.99 cents—was the core differentiator. Unlike competitors who moved to dollar-plus pricing, the "99" was a promise to the customer, one that the company ultimately could not sustain in the face of modern economic pressures.

The Five Economic Forces That Bankrupted the '99'

The company, headquartered in Commerce, California, filed for Chapter 11 bankruptcy in April 2024, announcing an "orderly wind-down" of all operations across its four operating states: California, Texas, Arizona, and Nevada. The decision to liquidate was a direct result of several compounding financial and operational challenges.

1. Unrelenting Inflation and Supply Chain Costs

The most devastating factor was the post-pandemic surge in inflation. The company's unique, fixed-price model meant they could not easily pass on rising costs to consumers. As the cost of goods, transportation, labor, and utilities skyrocketed, the 99 Cents Only Stores were forced to either absorb the loss or drastically reduce the quality and quantity of merchandise.

  • Cost of Goods Sold (COGS): The price of sourcing products from vendors became unsustainable, squeezing the profit margins to zero or negative on many items.
  • Logistics: Increased fuel and shipping costs made it prohibitively expensive to move products from distribution centers to the 371 stores.

2. The 'Shrinkage' Epidemic (Retail Theft)

Retail theft, or "shrinkage," was cited by company executives as a major contributing factor to the financial distress. Inventory losses due to theft and damage became a significant drag on profitability, particularly in high-traffic urban locations. This trend has hurt many retailers, but for a low-margin business like a dollar store, the impact is catastrophic.

3. The Pressure from Discount Retail Competitors

While the 99 Cents Only Stores pioneered the fixed-price concept, they were eventually outmaneuvered by larger, more flexible competitors. Rivals like Dollar Tree and Dollar General, which operate hundreds more stores, have greater buying power and more flexible pricing strategies.

  • Dollar Tree: Moved its core price point to $1.25, giving them 25% more margin to absorb inflation and stock higher-quality goods.
  • Dollar General: Operates a multi-price point model, allowing them to sell items for $5, $10, or more, providing a buffer against cost increases.

4. Post-COVID-19 Financial Fallout

The COVID-19 pandemic introduced several financial shocks, including initial store closures, supply chain disruptions, and a massive shift in consumer behavior. The company, which was privately held by the private equity firm Silver Lake, had accumulated substantial debt, making it difficult to secure new financing or weather the prolonged economic downturn.

5. The Unbreakable 99-Cent Price Point

Ultimately, the company's greatest strength became its fatal flaw. The commitment to selling items for 99.99 cents, while a powerful marketing tool, created an operational cage. When the cost of a quality item exceeded that threshold, the company had two bad choices: break the price promise or stop selling the item. This rigidity prevented the necessary adjustments that competitors made.

The Aftermath: Dollar Tree Swoops in for 170 Locations

The liquidation process was handled by Hilco Global, who managed the massive going-out-of-business sales across all 371 stores. However, the story of the 99 Cents Only Stores did not end with the final closing sale. The company’s valuable real estate footprint, particularly in high-demand California markets, quickly became a target for rivals.

In a major acquisition that reshaped the discount retail map, Dollar Tree, Inc. announced in May 2024 that it had acquired the designation rights for the leases of 170 former 99 Cents Only Stores locations.

  • Acquired Leases: 170 store leases were purchased by Dollar Tree.
  • States Affected: The acquisition included locations across the four core states of operation: California, Arizona, Nevada, and Texas.
  • Reopening Timeline: Dollar Tree plans to convert and reopen many of these locations under the Dollar Tree banner, with some stores welcoming customers as early as Fall 2024.
  • Impact: This move allows Dollar Tree to rapidly expand its presence in key Western and Southwestern markets without the lengthy process of new construction or lease negotiation.

The transformation of these storefronts represents a significant shift in the discount retail landscape. While the 99 Cents Only Stores brand is gone, the physical locations will soon serve a new purpose, likely offering the $1.25 and multi-price point merchandise that allowed Dollar Tree to better navigate the economic headwinds that ultimately doomed its predecessor. The legacy of Dave Gold’s vision lives on, albeit under a new, more flexible price tag.

The 5 Shocking Reasons Why 99 Cents Only Stores Closed All 371 Locations (And What Happens Next)
99 cents store
99 cents store

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