The 99 Cents Only Store chain in the United States has revealed plans to shutter its 371 branches located in California, Arizona, Nevada, and Texas. Clearance sales are expected to commence on Friday.

"This was an extremely difficult decision and not the outcome we had hoped for or expected to achieve," said Mike Simoncic, Interim Chief Executive Officer of 99 Cents Only Store. "Unfortunately, the past few years have presented significant and enduring challenges in the retail environment."

Simoncic mentioned that the discount store closure is due to the impact of the COVID-19 pandemic, shifts in consumer demand, and various economic factors.

"We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades," said Simoncic.

The company stated that it has partnered with Hilco Real Estate to assist with the liquidation of all merchandise, along with fixtures, furniture, and equipment from the company's stores.

"After months of actively pursuing these alternatives, the company determined that an orderly closure was necessary and the best way to maximize the value of 99 Cents Only Stores' assets," the company said in a statement.

The discount store was founded in 1982 and operated nearly 400 retail locations.