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Los Angeles County to help thousands of displaced 99 Cents Only employees

Los Angeles County is working to help thousands of employees who will be laid off when all 99 Cents Only stores close this summer.

Following the April 4 announcement that all 371 stores across California, Nevada, Arizona and Texas would be shuttering amid financial difficulties, local officials are stepping in to help.

In California, there are over 3,700 workers across 143 stores, three distribution centers and one headquarters location that will be out of work. In L.A. County alone, there are 94 stores and three distribution centers, supporting around 2,500 jobs.

Local officials, including Mayor Karen Bass and the L.A. County Board of Supervisors, have vowed to help the displaced workers by offering free job-searching help and career assistance.

On Saturday, officials hosted a “Good Jobs Fair” offering help with unemployment insurance, housing and tenant support, medical coverage options, job search and placement, public and health benefits, retirement plans, WIC program, food distribution, and more.  

“This is an all-hands-on-deck situation,” said L.A. County Supervisor Janice Hahn, who wrote the motion seeking help from the departments of Economic Opportunity and Consumer and Business Affairs. “The County is stepping in to make sure these workers have the support they need to get through this crisis, and not only get new jobs – but better jobs.”

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The motion, which was approved unanimously by board members, called for Rapid Response efforts focused on enhanced job training, job placement and connection to resources.  

“You’ve got cashiers, stock and warehousing workers, drivers, supervisors, managers and more now displaced and in need of urgent support to get back on their feet,” said Kelly LoBianco, Director of the L.A. County Department of Economic Opportunity.

Headquartered in the city of Commerce, 99 Cents Only officials cited several reasons for the mass closure including financial difficulties from the pandemic, rising inflation and changing consumer demand.

“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said Mike Simoncic, Interim CEO of 99 Cents Only. “Unfortunately, the last several years have presented significant and lasting challenges in the retail environment…all of which have greatly hindered the Company’s ability to operate.”

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The popular discount chain was famous for its wide variety of items at reasonable prices including household goods, fresh groceries, snacks, office supplies, health and beauty products, party supplies and more.

Founded in Los Angeles in 1982 by David Gold, 99 Cents Only “pioneered the single-price retail concept,” according to the Los Angeles Times.

During that era, dollar stores were seen as places that sold mostly junk or unpopular goods. However, Gold aimed to make his stores the opposite of that. He wanted the stores to offer customers good quality, useful products at an everyday price.

Since the closure announcement, there have been efforts by a potential investor group to save the majority of 99 Cents Only stores still operating in California.

Mark Miller, CEO of Pic ‘N’ Save Bargains and former president of Big Lots, is leading efforts to purchase the discount stores and keep the company alive in the Golden State.

“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,” Miller told Los Angeles Magazine.

Miller has put together a team that includes former 99 Cents Store executives to potentially acquire the stores, which he said serve an important role in local communities for those living on a budget.

“This group of customers is priced out of other chains,” Miller explained to L.A. Magazine. “It stretches their buying power. Especially today. That’s why this is a passion for me.”

Employing around 14,000 workers across four states, the company has begun liquidating all merchandise and disposing of furnishings, fixtures and equipment at the stores. 

All locations will officially close on June 5. 

“We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades,” Simoncic said.