LOS ANGELES — A day after Commerce-based operators of 99 Cents Only Stores announced the closure of all 371 of its locations, a pair of Southland elected officials Friday said they wanted to provide support for employees who will soon find themselves out of work.
"99 Cents Only stores serve an important role in our communities' business districts," City Councilman Tim McOsker said in a statement. "In the 15th District we have three, in Harbor City on Pacific Coast Highway, in Wilmington on Anaheim St., and in San Pedro on Gaffey Street."
He called the stores a "lifeline" for lower-income residents of the Harbor area while employing many residents. McOsker said the closure of 99 Cents Only stores will be "felt by our district."
The councilman said he's been in communication with the city's Economic Workforce Development Department and asked them to deploy a rapid response team to provide these workers with a range of resources, such as assistance with unemployment insurance benefits and helping them find a new job.
"We will do our best to mitigate the negative impacts of these layoffs and to support the workers, their families and our communities," McOsker said.
Los Angeles County Supervisor Janice Hahn echoed those sentiments, and said she would introduce a motion during Tuesday's board meeting asking for a report on ways the county can provide support for displaced workers from the chain.
"I am worried about the thousands of 99 Cents Store workers across LA County who are going to lose their jobs, but LA County is ready to help," Hahn said in a statement Friday. "We have a department that can step in during an event like this and help workers with not only short-term assistance to get through this difficult time, but job training and support to help them get a better job."
Her motion will request a report within 60 days from the county departments of Economic Opportunity and Consumer and Business Affairs.
On Thursday, the operators of the stores announced they would shutter all locations. Liquidation sales began Friday. The move is expected to impact all company locations in California, Arizona, Nevada and Texas.
"This was an extremely difficult decision and is not the outcome we expected or hoped to achieve," interim company CEO Mike Simoncic said in a statement issued Thursday. "Unfortunately, the last several years have presented significant and lasting challenges in the retail environment, including the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures and other macroeconomic headwinds, all of which have greatly hindered the company's ability to operate.
"We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades."
According to the company, it has partnered with Hilco Real Estate to facility a liquidation of all merchandise, along with "certain fixtures, furnishings and equipment at the company's stores."
The 99 Cents Only stores were founded in 1982.
Company officials said they conferred with financial and legal advisers in hopes of finding a way to continue operating.
"Following months of actively pursuing these alternatives, the company ultimately determined that an orderly wind-down was necessary and the best way to maximize the value of 99 Cents Only Stores' assets," according to a company statement.