COMMERCE, California: Ending its 42-year run of selling an assortment of bargain-basement merchandise, 99 Cents Only Stores say that it will close all 371 of its outlets around the U.S.

The California-based retailer has stores across its home state and in Arizona, Nevada, and Texas. It said it would begin selling off its stock of merchandise, as well as fixtures, furnishings, and equipment.

In a statement, Interim CEO Mike Simoncic said that the company has struggled for years due to the COVID-19 pandemic, slowing consumer demand, inflation, and rising levels of losses from employee theft, shoplifting, damage, administrative errors and other causes, which is known as product “shrink.”

“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said Simoncic, who will be stepping down as the company’s head.

Last month, rival discount retailer Dollar Tree said it was closing 1,000 stores.

99 Cents Only Stores was founded in 1982 in Los Angeles by Dave Gold, who opened its first store when he was 50.

Gold’s store quickly became popular, even in middle-class and upscale neighborhoods, enabling the company to go public on the New York Stock Exchange in 1996. It was later sold for some $1.6 billion in 2011.

While the chain initially sold most items for 99 cents, that became untenable in recent decades, although the company kept its trademarked name.