Downtown Santa Barbara has lost another big store.
The 99 Cents Only store on the 400 block of State Street plans to close its doors as part of a nationwide corporate closure.
The closure also affects two 99 Cents Only stores in Santa Maria and one in Lompoc.
“99 Cents Only Stores LLC … today announced plans to commence an orderly wind-down of its business operations,” according to a news release. “The company has entered into an agreement with Hilco Global to, among other things, liquidate all merchandise owned by the company and dispose of certain fixtures, furnishings and equipment at the company’s stores.”
It is unclear when the store will close, but it is soon, according to the news release. The liquidation is set to begin immediately and take place at all 371 of the company’s locations.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said Mike Simoncic, interim CEO of 99 Cents Only Stores and managing director at Alvarez & Marsal. “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.
“We deeply appreciate the dedicated employees, customers, partners and communities who have collectively supported 99 Cents Only Stores for decades.”
The store is one of the last large corporate retailers in downtown Santa Barbara. Downtown has struggled with an exodus of big retailers, leaving empty storefronts. The 400 block is still open to vehicle traffic, but some residents and Santa Barbara City Councilman Oscar Gutierrez have raised concerns that the block has been neglected amid the State Street Master Plan discussions.
However, Gutierrez is trying to stay hopeful.
“I am a little saddened that another business is closing on State Street, but I am going to be optimistic,” he said. “That location, however, would be a great location for housing. I think it would be a great location for a developer, and I encourage any developers out there to look into it.”
Councilwoman Alejandra Gutierrez said the closure has nothing to do with the local issue in keeping business on state.
“This is a great opportunity to redevelop a prime piece of State Street,” she said. “I am looking forward to see something beautiful come to fruition that provides commercial and residential units. Overall, it is a great opportunity to repurpose for something that will continue to serve the needs of the community.”
