99 Cents Only Stores Enters into Liquidation

Significant Changes in the Retail Landscape: 99 Cents Only Stores Wind-Down

What’s up! Welcome back to NNN Beast, the no-cost, no-nonsense email newsletter that gets you the latest and most valuable net lease real estate news straight to your inbox.

Here’s what we’ve got for you today:

👋 Was this email forwarded to you? Subscribe to get it directly!

99 PROBLEMS, BUT A LIQ AIN'T ONE

99 Cents Only Stores Enters into Liquidation (Read More)

99 Cents Only Stores

  • End of an Era: After over four decades in operation, 99 Cents Only Stores LLC announces plans to cease operations, entering into an agreement with Hilco Global to liquidate merchandise and dispose of store fixtures.

  • Management Changes: Chris Wells of Alvarez & Marsal is appointed as Chief Restructuring Officer to facilitate the wind-down, while interim CEO Mike Simoncic steps down.

  • Challenges in Retail Environment: Simoncic cites various challenges, including the impact of the COVID-19 pandemic, shifting consumer demand, inflationary pressures, and macroeconomic headwinds, as factors contributing to the company's decision.

  • Exploration of Alternatives: Despite efforts to explore alternatives, including bankruptcy filing considerations, the company concludes that an orderly wind-down is the best course of action to maximize asset value.

  • Legacy: Founded in 1982, 99 Cents Only Stores currently operates nearly 371 stores across California, Texas, Arizona, and Nevada, marking the end of its longstanding presence in the retail landscape.

TRIPLE NET TENDIES

🧠 Thought Leader: Rahul Chhajed’s thoughts on short-mid term leases

👂 Ear Hustle: Karly Iacono shares why multi-family developers are now focusing on retail

💎 Web Gem: Ken Jacobsmeyer shares the list of 99 Cents Only Store addresses

NET LEASE NUGGIES

  • Expansion Agreement Boosts Papa Johns Growth Papa Johns announces plans to open 50 new restaurants by 2028 in partnership with franchisee Nadeem Bajwa and his company, The Bajco Group, aiming to expand in existing Midwest, Arizona, Pennsylvania, and Florida markets. This strategic move comes soon after a CEO shakeup at the pizza chain, with Ravi Thanawala named interim chief executive. Papa Johns also launched the Back to Growth Program to accelerate store growth and restaurant-level margins. (Read More)

  • Chick-fil-A’s Impressive Financial Growth in 2023: Chick-fil-A achieved a new sales record, surpassing $21.6 billion in systemwide sales, showing a significant increase from previous years. The brand's strategic expansion and financial strength positioned it ahead of competitors in the competitive quick-service restaurant industry. With a focus on innovation and customer experience, Chick-fil-A continues to thrive and evolve in the market. (Read More)

  • Department of Labor Investigates SQRL’s Wage Practices The DOL’s Wage and Hour Division is probing SQRL for payroll discrepancies. SQRL allegedly owes vendors money, and previous investigations revealed missed payrolls due to errors. SQRL has faced lawsuits for non-payment, including a $2.9 million claim. Amid internal changes, SQRL aims to reopen 200 acquired stores. Specializing in convenience stores, SQRL operates over 300 locations nationwide. (Read More)

BEAST TWEETS

🐦 Daniel Herrold: Below are the 16 tenants we actively track monthly and the # of deals on the market as of 3/1…

🦅 NNN Retail Guy: Common brokers don’t have the answer readily available when I ask “what’s the story on the other corners”…

🦢 Jason Miller: Yesterday Life Time opened its first ground up indoor Pickleball center in Chanhassen, MN…

🦆 Michael Moreno: The three main reasons investors own real estate…

VISUAL OF THE DAY

Visual Capitalist

🚨Was this email forwarded to you? Subscribe to get it directly! 🚨