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The 99 Cents Only announced that all of its 371 shops are closing their doors and commencing liquidation sales on Friday, April 5.

Financial issues have forced one of the largest discount shop chains in the United States to close its stores and prepare for subsequent liquidation.

The franchise, based in Commerce, California, has been around since 1982. Its sites notoriously stringently impose 99-cent price tags on a wide range of items.

99 Cents Only Decides to Wind Down Its Business

In a press release, 99 Cents Only said that it joined its legal and financial consultants to thoroughly examine all viable options and choose a solution that would enable the company to stay in operation. However, it eventually decided to wind down its business.

"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," said the company.

Among the several states in which 99 Cents Only is active are California, Arizona, Nevada, and Texas. Currently, it has about 371 locations fully prepared for liquidating merchandise and real estate, according to Fox Business.

Interim CEO: 'Not the Outcome We Expected'

Mike Simoncic, the interim chief executive officer of 99 Cents Only Stores, said that this was a callous choice and not what they had wanted or anticipated to happen.

"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," he added.

Along with the start of liquidation, the firm also stated that Simoncic would be stepping down in the coming weeks.