LA County Board Looks for Ways to Aid 99 Cents Only Store Employees

The Los Angeles County Board of Supervisors Tuesday directed its staff to prepare a report on ways the county might be able to provide financial and other support to people losing their jobs due to the closure of 99 Cents Only stores in the area.

The company operates two stores in Pasadena, one near Pasadena City College at 1720 E Colorado Blvd. and the other at 442 N Los Robles Ave., near Villa Street. It is unknown how many employees work for the company in Pasadena.

“When Farmer John was closing their plant in Vernon after 90 years in operation, and this closure affected 2,000 employees … we immediately began to marshal the resources of L.A. County (to assist them),” said Supervisor Janice Hahn, who introduced the motion. “Now we’re faced with a similar situation with the 99 Cents stores announcing their closure.”

The board unanimously approved Hahn’s motion, which requests a report within 60 days from the county departments of Economic Opportunity and Consumer and Business Affairs on ways they can assist displaced workers.

Hahn noted the county can provide assistance such as job training, job placement services and resources to help them file for unemployment.

On Thursday, the Commerce-based operators of the stores announced they would shutter all 371 locations, affecting stores in California, Arizona, Nevada and Texas. The stores began liquidation sales on Friday.

“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 partnered with Hilco Real Estate to facilitate 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.

Late last week, a former president of Big Lots and the original Pic ‘N’ Save brand told Los Angeles Magazine he is exploring an effort to save the 143 99 Cent Store outlets in Southern California.

Mark J. Miller said he has put together a group of investors, including some former 99 Cents Store executives, to try to acquire the Southern California stores, close them for about 90 days after the going-out-of-business sales end and then reopen with an emphasis on the “treasure hunt” style that made the stores popular in the first place.

Hahn noted the possibility of the stores being taken over by new management, but she said such a move would not occur for at least 90 days.

“With our homelessness crisis … the last thing we need is 3,000 workers who suddenly, without much warning, are without jobs,” Hahn said.