99 Cents Only Stores – A Fatal Victim of the Pandemic?
The discount goods enterprise, 99 Cents Only Stores, has announced the shut down of all of its outlets across America, including all those in San Antonio. This decision came as a shocking and unexpected development for the city’s residents who relied on the value retailer for their everyday needs.
Behind the Shut Down
The California-based company blames the widespread closures on multiple factors, chief among them being the blow dealt by the COVID-19 pandemic. The interim CEO, Mike Simoncic, has announced a liquidation sale of all merchandise from the 371-stores chain, starting April 5.
The extent of the shutdown encompasses not just the stores located in California, but extends to the 44 outlets established in Texas, and the five in Dallas-Fort Worth. These include locations in Arlington, Colleyville, Duncanville, Dallas, Fort Worth, Garland, and Mesquite.
A Tough Call
Since its establishment in 1982, 99 Cents Only has endeared itself to its patrons by offering a wide range of discounted goods. Its inventory included commodities like party and cleaning supplies, home, beauty products, and snacks.
The move to shut down the company was not an impromptu decision. Before reaching such an impactful resolution, the company owners explored various alternatives. In the end, they concluded that an orderly wind-down would be the most practical and beneficial approach to maximize the company’s assets’ value. The company has also hired Chris Wells, a managing director at Alvarez & Marsal, as Chief Restructuring Officer to oversee the shutdown.
Mike Simoncic shared the news with heavy-heartedness in a press release, stating, “This was an extremely difficult decision and is not the outcome we expected or hoped to achieve.” The chain has been struggling with complications like rising shrink levels, constant inflationary pressures, shifting consumer demands, and of course, the impacts of the pandemic, he explained.
Texas Faces High Healthcare Costs
In other news, Texas has been listed at the 5th position in the most expensive states for healthcare costs, according to a recent Forbes Advisor study. The study indicates that Texans are more likely to avoid medical consultations and services due to their high costs, compared to residents of other states.
Healthcare Inequality Across States
The report presented by Forbes highlights the inequality in the distribution of healthcare costs across the US. In Texas, residents face quite steep healthcare expenses, which notably includes elevated deductibles and premiums. The financial implications of these expenses often cause residents to delay seeking medical care or deter it altogether.
Furthermore, concerning healthcare for families, Forbes has brought some alarming statistics for Texas to light. A staggering 15% of families with children in Texas reported struggling to cope with their medical bills in the past year. This is the highest percentage documented across the nation.