Hilco Real Estate Manages $168 Million Asset Sale of 99 Cents Only Stores Bankruptcy

Hilco Real Estate Achieves Major Success in 99 Cents Only Stores Bankruptcy

In a significant development under the Chapter 11 bankruptcy filing of 99 Cents Only Stores, LLC, Hilco Real Estate, LLC (HRE) has announced a successful sale of the company's real estate assets, achieving over $168 million in proceeds. This noteworthy transaction not only reflects HRE's expertise in managing large-scale real estate operations but also highlights the potential for revitalizing local economies.

99 Cents Only Stores, a well-known discount retailer founded in 1982 in Los Angeles, expanded its operations across California, Texas, Arizona, and Nevada, eventually managing a large network of retail locations. However, due to mounting competition, rising labor costs, and challenges stemming from the COVID-19 pandemic, the company faced insurmountable difficulties and entered liquidation under Chapter 11 in April 2024.

Tasked with the urgent mission of monetizing both owned and leased assets, HRE swiftly stepped in to orchestrate a comprehensive marketing strategy. Under the pressure of time constraints and the perishability of perishable inventory, HRE developed and implemented this strategy in a mere 45 days. Their efforts bore fruit as widespread interest from potential buyers emerged, ultimately generating more than 360 indications of interest and 181 formal asset purchase agreements along with earnest money deposits.

The auction process culminated in a competitive, virtual bidding event, attracting diverse investment interest, including from major retailers and local business representatives. The results were impressive, with property closings averaging only 30 days post-auction. Several buyers have already begun to reopen former 99 Cents locations to serve local communities, while others are in the pipeline for redevelopment, bringing new businesses and services to the areas they occupy.

Joel Schneider, HRE's Senior Vice President, expressed pride in the outcome of this portfolio sale. He stated, "This transaction not only represents a successful financial outcome but fundamentally revitalizes the properties within their respective communities. These locations are set for new beginnings as they transform into vibrant retail environments or redevelopment projects that will enrich the local fabric of Arizona, California, Nevada, and Texas."

In addition to managing the real estate auction, Hilco Consumer – Retail played a crucial role by overseeing the liquidation of inventory, fixtures, and equipment, ultimately recovering an impressive $245 million. This collaboration ensured that properties were sale-ready, enabling maximized returns from both the real estate and operations perspectives.

For businesses and investors looking towards future opportunities in the ever-evolving retail landscape, Hilco Real Estate remains a vital resource. Their proficiency in navigating complex bankruptcy transactions and commitment to community impact solidify their position as industry leaders.

For further insights or details about ongoing opportunities, interested parties can visit HilcoRealEstate.com or contact them at (855) 755-2300.

About Hilco Real Estate

Hilco Real Estate is headquartered in Northbrook, Illinois, specializing in strategic real estate disposition services on a national scale. The firm is well-known for its robust ability to maximize asset value through diversified sales strategies and an extensive buyer network. In affiliation with Hilco Global, they focus on delivering exceptional real estate solutions to clients amid the most complex market conditions.