99 Cents Only Stores Files for Voluntary Chapter 11 Protection to Facilitate Wind-Down of Business Operations and Pursue Value Maximizing Sale of its Real Estate and Other Assets

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Apr 08, 2024, 00:37 ET

All 99 Cents Only Stores are currently open and have commenced going out of business sales

The Company has secured $60.8 million in senior secured super priority debtor-in-possession financing

CITY OF COMMERCE, Calif., April 7, 2024 /PRNewswire/ -- Number Holdings, Inc., the direct parent company of 99 Cents Only Stores LLC (the "Company" or "99 Cents Only Stores") today announced that it has filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code ("Chapter 11") in the United States Bankruptcy Court for the District of Delaware (the "Court") to implement the previously announced orderly wind-down of its business and pursue a value maximizing sale of its real estate and other assets.

The Company has secured $60.8 million in senior secured super priority debtor-in-possession financing consisting of $35.5 million in new money to be provided by an entity affiliated with certain of the Company's existing stakeholders, subject to court approval, to facilitate the wind-down and pursue a value maximizing sale of its real estate and other assets.

To date, all 99 Cents Only Stores remain open, and the Company has commenced going out of business sales at all 371 store locations, offering customers significantly reduced prices on a wide range of products.

The Company has filed customary motions with the Court to support its operations through the wind-down process, including payment of employee wages.

Court filings and other information related to the court-supervised process are available online at https://cases.ra.kroll.com/99only, or by contacting the Company's claims agent, Kroll LLC, at [email protected] or by calling toll-free in the U.S. or Canada (844) 712-1933 or +1 (646) 777-2513 for calls originating outside of the U.S.

Milbank LLP is serving as legal advisor to 99 Cents Only Stores, Jefferies LLC is serving as the Company's investment bank, and Alvarez & Marsal is serving as the Company's restructuring advisor. Hilco Global is assisting the Company with its previously announced liquidation event, and Jefferies LLC and Hilco Global are managing the sale of the Company's real estate assets, both owned and leased, in Arizona, California, Nevada and Texas.

About 99 Cents Only Stores
Founded in 1982, 99 Cents Only Stores LLC currently operates nearly 371 stores located in California, Texas, Arizona and Nevada. 99 Cents Only Stores LLC offers a broad assortment of name brand and other attractively priced merchandise as well as compelling seasonal product offerings. For more information, visit http://www.99only.com/.

Forward Looking Statements
This press release includes "forward looking statements". Forward looking statements express our current expectations, opinion, belief or forecasts of future events and performance. A statement identified by the use of forward looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "will," "should," and certain of the other foregoing statements may be deemed forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. By issuing forward looking statements based on current expectations, opinions, views or beliefs, the Company has no obligation and, except as required by law, is not undertaking any obligation, to update or revise these statements or provide any other information relating to such statements.

Contacts:

Media Contact:
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SOURCE 99 Cents Only Stores LLC