The Decline of 99 Cents Only Stores...What Happened?

The west coast chain of dollar stores is reportedly filing for bankruptcy and shutting down all their stores. This video attempts to identify the biggest reasons behind their failure.

To submit ideas and vote on future topics:

A very special thanks to this wonderful group of Patrons:
Library of Scars, Craig Mews, Jon Sturtz, Gabriela Martinez Celaya, Jennifer Yugo, Checkered Omega, Caitlin Kenney, Jandel, John Briscoe, Laura Floyd, John & Becki Johnston, Kib Bibens-LeFebvre, Andrew Jeeves, aziz alfozan, Audria Richmond, Adamant, Moriah Krawec, Dandaley, Tyrone Cowan, NoChance13, Ronnie Cheng, Astra, Ahmad, milkshake, Jon, Christian & Penny Gray, Emerald Computers – Jason Dragon, Brett Walton, Peter Wesselius, Meow Wolf, MyNameIsKir, Sirpoptart.

Company Declines:
______________________________

[stillbuyvhs]

$20 million paid to the owners each year? Sounds like the equity firm knew what they were doing, milking the company to pay themselves, even if it wasn't stable & couldn't pay its debts.

[ghostcoffee]

99 cent stores closing was actually really shocking to me. It’s one of those places that’s been in my life and you never missed it until it’s gone.

[karenvgrivas]

The 99 was my first retail job and I had a good experience working there. I will miss it mainly because it was where I learned everything I know now, retail-wise, and I’m a better worker in my current job because of the 99. I thank this company for the opportunity it gave me.

[ThisOldSkater]

All I've learned from this channel is Leveraged Buyout=squeeze every nickel out of the business until it dies.

[TheTravelingHatter]

A great story how private equity firms can take over a company with borrowed money, pay themselves with borrowed money, and declare bankruptcy to get rid of the debt created by paying themselves with borrowed money 🙄

[layersofsnark]

I'm gonna actually miss this store. It was really useful many times.

[FUNNYBUNNI]

My husband worked at the corporate office there in Commerce from 2017 to Nov 2019 right before pandemic. They would tell them things were great and sales were going up with the new store offerings. Then mid 2019, they started laying off employees in accounting, then purchasing, then it got to my husband in the design group. They told him they were moving all these positions to India 😢 and in order to get severance, he had to train them. My husband was so so sad as he really liked that job. I guess even cheapening labor costs didn’t help them stay afloat. To me, I live that store! I have great memories of when I was a young girl and it really helped me as a broke young lady in my 20’s. I’d buy food and cleaning supplies there that were the cheapest I could find.

[donyeri]

My father has worked for the 99 cent stores for over 50 years. He worked with Dave Gold when he owned the liquor store in the Grand Central Market in DTLA(where he met my mom...my grandfather owned a produce shop on there). Speaking with my dad throughout the years about work, the decline started after they kicked the Gold family out of the business. Once they were out all the corruption started. The company became "top" heavy and they were paying execs stupid amounts of money as the expanded east. I knew Dave and his family. They were good people and took care of my dad when Dave and then his wife Sherry passed away(in there will). My dad was there before the 99 and will outlast the company. He works in the warehouse to this day.

[Libertycityking]

I honestly forgot about this store! Back when I was a little kid in Las Vegas, my grandmother would take me there all the time with what little money I had to buy bags of plastic soldiers and various cheap toys that were amazing for their time in the early 2000’s.

[julianchermack]

Thanks for responding to the episode idea I submitted.

[SuperThegreatone]

Everyone is freaking out over here in California!

[PurplePuppy]

I literally just heard the 99 store was closing all its locations I was just scrolling through YouTube about it just now and your video just uploaded in-front of me about it. What a coincidence yet so sad

[FedericoPrieto]

1982: ohh 99¢ for a couple of T-bones!
2020: ohhh a 99¢ chiclet... So cheap!

[primitivepainting]

There is a 99 cents next to my workplace and I go there every time with my coworker to buy junk food after work. Sad to see this happening because this is really the only dollar place that sells produce and brand food. Now when I enter and see the 10 percent discount signs, I feel a bit disappointed because now I can’t rely on 99 cents to buy discount food/cleaning products.

[gabriel]

Worked for Corporate during the acquisition in 2011. This absolutely sunk the business. I believe it was the son-in-laws grand idea to enter in the transaction. He was one of the first to get let go. What really sucks is that Dave Gold had the heart attack during a Board Meeting. He truly loved the business and was devastated when he lost control. Sad to see this.

[ChristianWheel]

The quality of the produce sold at these stores can be exceptional, and 99c Only has been a lifeline for a lot of lower income people. The loss of these stores will be economically devastating to a lot of people for meeting basic needs. It also will further exacerbate urban food deserts and this is a huge loss for the communities the stores serve. One again another leveraged buyout tanking a company. It's so disappointingly common, and tragic for those who losing their jobs and their neighborhood stores.

[AnthonyChhan]

So sad. I drove by one yesterday and they already have signs on their windows announcing store closing.

[zugdarr]

Nice stores, we had one nearby my house in AZ, and it's always clean. I thought I had read that one of the other top reasons they had for losing money was shrink. I can see the debt load issue - they got bought out in 2011, new management team demands higher sales targets and growth so they borrow. But if they were getting ripped off like the other retailers in California (and NYC for that matter) then you have to sell a ton of merchandise to make up for that.

[racooninvasion]

It was such a great store in Scottsdale, they had everything and it was so cheap! I loved that place for Halloween stuff, Christmas, Easter... So sad.

[sheluvsbrian]

Dude I fucking love the 99 cents store. I’m a Mexican kid who grew up in Wilmington California in a section 8 apartment complex with a BUNCH of other latinos/black people and the 99 to us was a miracle. The amount of runs to the store with my friends or my mom is truly countless. I have so many memories of me and the homies going to the 99 after school or just randomly to get some Gatorade and chips and shit. I’m honestly so fucking sad to what’s happening to our country. At this point everyone can feel the impact that this sped administration has brought us. Long live the 99 cents store and all the cheap prices it brought. Rip 50 cent coke cans.