Staff
Los Angeles County Supervisor Janice Hahn is calling for the county to aid local workers impacted by the closure of all 371 nationwide locations of 99 Cents Only Stores.
The discount retailer announced plans to wind down its business operations on Thursday, attributing the decision to significant and lasting challenges in the retail environment.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” interim Chief Executive Officer Mike Simoncic said in a statement. “We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades.”
Simoncic cited factors such as the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, inflationary pressures, and other macroeconomic headwinds which hindered the company’s ability to operate.
Expressing concern for the thousands of workers set to lose their jobs across LA County, Hahn said in a press release: “LA County is ready to help.”
“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,” Hahn said.
Headquartered in the City of Commerce–located within Hahn’s 4th District, which includes Downey and neighboring cities–99 Cents Only Stores have a significant presence across LA County. The closures are projected to affect approximately 14,000 workers nationwide.
On Tuesday, the Los Angeles County Board of Supervisors will vote on a proposal by Hahn to direct the Department of Economic Opportunity (DEO) and the Department of Consumer and Business Affairs to report back in 60 days with an action plan to assist the employees from 99 Cents Only Stores with Rapid Response and other services, including enhanced job training, job placement, and connection to stabilizing resources.
Hahn’s proposal mirrors the county’s response following the closure of a Farmer John meatpacking plant in the City of Vernon last year. Prior to the plant’s closure, the California Employment Development Department (EDD) announced the approval of $6.1 million for employment training and services to assist roughly 2,500 impacted workers.
The funding stemmed from a collaboration between various entities, including the EDD, DEO, City of Los Angeles Economic and Workforce Development Department, Los Angeles County and City Workforce Development Boards, California Labor Federation, and the United Food and Commercial Workers (UFCW) Local 770.
Dave and Sherry Gold opened the first 99 Cents Only Store in Los Angeles in 1982, according to the company’s website. The chain has locations in four states and two distribution centers in California and Texas.
