Re: 99 CENT ONLY closing
Posted: April 15th, 2024, 3:55 am
This seems like one of the worst going out of business operations I have come across.
Reports indicate the chain hasn’t been profitable EBTID since 2016, so again, private equity isn’t to blame. Obviously everyone is raising prices — even Dollar Tree — and 99’s customer base fled as it raised theirs, leading to the owners shutting it down.ClownLoach wrote: ↑April 13th, 2024, 12:43 pmOC Register reports $1.6B in Long term debt, yet the bankruptcy doesn't list it in top creditors. Making me think the debt is to the PE owners which means all the returns go to them, and they hadn't defaulted on that debt. Still very odd that there are discrepancies. The property list is a mix, some properties are probably very valuable others less so.storewanderer wrote: ↑April 13th, 2024, 1:18 am Sparks 99 Only was told their last day will be April 28. They had previously been told June 3.
There is still a LOT of product in the backroom at this store. They are not making much effort to get it out onto the sales floor. I am wondering if they will just pick it up and sell it in SoCal.
It appears they threw all of their produce away as there is no way they sold it all at 5% off and they were still putting new produce out Sunday when I was there. There is no produce. They really need to clean this place. I didn't like what I saw scurrying between shelves/going under shelves on one of the aisles.
Reno 99 Only also has a LOT of inventory in its backroom. Carson City 99 Only has little on the sales floor and the backroom is almost empty. Not sure if these two had their closing date moved up. They are both no longer adhering to the store hours of 9-9 and seem to close whenever they feel like it more than an hour early. I will be curious to find out if these two got their closing date made sooner too.
They’re burning through inventory locally. They may feel it’s more beneficial to get the stock to stores where it will sell for higher prices. The trade off of trucking it is probably washed out by closing the stores.storewanderer wrote: ↑April 14th, 2024, 8:27 pm So the backrooms are STUFFED FULL in both Reno and Sparks. The stores are closing on or BY April 28 (some employees think they could be closed any second). So I asked what is happening to the stuff in the backroom. I was told they are going to pick it all up and nothing more is going to be stocked. No clue where it is going. The stores are pretty empty.
I've never heard of a total liquidation having the company "picking up" an entire backroom worth of product. These backrooms are a huge mess. There are partially opened boxes, seasonal stuff that never got put out, etc.
I am wondering if that Pic N Save has had talks to take on some inventory so they can quickly turn around and reopen some stores...
These stores were supplied by distribution in Commerce, CA which is almost 500 miles away... assuming that is where the stuff is being taken back to...
All 3 stores here still have coolers sort of stocked; two stores about 50% stocked, one store maybe 20% stocked. Dairy is all gone. Bread is all gone. They owe Safeway $1 million+.Bagels wrote: ↑April 15th, 2024, 5:18 amThey’re burning through inventory locally. They may feel it’s more beneficial to get the stock to stores where it will sell for higher prices. The trade off of trucking it is probably washed out by closing the stores.storewanderer wrote: ↑April 14th, 2024, 8:27 pm So the backrooms are STUFFED FULL in both Reno and Sparks. The stores are closing on or BY April 28 (some employees think they could be closed any second). So I asked what is happening to the stuff in the backroom. I was told they are going to pick it all up and nothing more is going to be stocked. No clue where it is going. The stores are pretty empty.
I've never heard of a total liquidation having the company "picking up" an entire backroom worth of product. These backrooms are a huge mess. There are partially opened boxes, seasonal stuff that never got put out, etc.
I am wondering if that Pic N Save has had talks to take on some inventory so they can quickly turn around and reopen some stores...
These stores were supplied by distribution in Commerce, CA which is almost 500 miles away... assuming that is where the stuff is being taken back to...
Most stores near me have only toys and gwneral merchandise left. Very little food at all. No produce left but the cashier told me people bought it, it wasn’t tossed. Meanwhile the empty coolers are still running.
My guess is that either Pic N Save or Ollie's is about to have a "Major Retailer Buyout" sale. Ollie's does this almost every time a company with items compatible with their stores goes out of business - Bed Bath & Beyond stuff is still there in some stores.storewanderer wrote: ↑April 14th, 2024, 8:27 pm I've never heard of a total liquidation having the company "picking up" an entire backroom worth of product. These backrooms are a huge mess. There are partially opened boxes, seasonal stuff that never got put out, etc. .
I mean Pic N Save is two small stores, both so poorly merchandised that they couldn't fit one 99 store back room on their floors without bringing the store fixtures with them. I don't take them seriously in their dream of reopening all these sites which sound like they already have other tenants lined up or they would have to buy the buildings.wnetmacman wrote: ↑April 16th, 2024, 6:34 amMy guess is that either Pic N Save or Ollie's is about to have a "Major Retailer Buyout" sale. Ollie's does this almost every time a company with items compatible with their stores goes out of business - Bed Bath & Beyond stuff is still there in some stores.storewanderer wrote: ↑April 14th, 2024, 8:27 pm I've never heard of a total liquidation having the company "picking up" an entire backroom worth of product. These backrooms are a huge mess. There are partially opened boxes, seasonal stuff that never got put out, etc. .
Well I've received quite a bit of flack here for suggesting that not all is what it seems based on the filings too. It is very likely that the "long term debt" is really paper held by the PE firm which is why it isn't on the bankruptcy, and that could align with a drastic downsizing strategy with partial sale (as is being speculated that Aldi is acquiring blocks of stores outside of the SoCal core). Maybe there is more to the story of this guy from the embryonic Pic-N-Save relaunch "saving the company" and reopening SoCal but with the existing ownership and him as the new CEO since they would need one. The lack of inclusion of the large debt that newspapers report on, coupled with the chapter 11 instead of more appropriate chapter 7 indicates that they intend to mold this bankruptcy into some sort of end product operating asset for ownership to walk away with.storewanderer wrote: ↑April 16th, 2024, 10:47 pm
I am starting to wonder if this is going to be like Fallas who seems to have gone bankrupt and had liquidation sales multiple times but then reopens shortly thereafter running what seems like the same format.