Hilco Real Estate Delivers $168M+ in Value Through 99 Cents Only Stores LLC Liquidation

NORTHBROOK, Ill., Dec. 9, 2024 /PRNewswire/ -- Hilco Real Estate, LLC (HRE) announces the successful sale of real estate assets within the Chapter 11 bankruptcy case of 99 Cents Only Stores, LLC (99 Cents).

99 Cents, a prominent discount retailer that originated in 1982 in Los Angeles, California, expanded into Arizona, Texas and Nevada, eventually managing 41 owned retail locations, 333 leased stores and three vacant development parcels. However, due to rising competition, increased labor costs and logistical challenges — exacerbated by the lingering effects of the COVID-19 pandemic — the company was forced into liquidating under Chapter 11 bankruptcy in April 2024. HRE was quickly engaged by 99 Cents to run a coordinated monetization process for its real estate of owned and leased assets.

Given the time constraints of the bankruptcy process, combined with the perishability of a portion of the company's grocery-related inventory, swift action was required. HRE had 45 days to develop and execute a targeted marketing strategy. Within this timeframe, the team attracted significant interest from prospective buyers nationwide. By leveraging a combination of direct outreach, print and digital marketing campaigns, over 360 Indications of Interest were submitted, leading to 181 Asset Purchase Agreements received together with non-refundable earnest money deposits.

The campaign culminated in a highly competitive, virtual auction that drew bids from qualified investors, including a major national discount retailer as well as local end-users, ensuring the portfolio achieved maximum value. Following the auction, all property closings were completed within an average of just 30 days. Several of the properties purchased by large retailers have already begun reopening to serve the neighborhoods in which they are located, while other sites are slated to become thriving retail spaces or redevelopment projects, bringing new retailers or services to these areas.

Ultimately, HRE successfully managed the sale of the company's portfolio of 44 owned locations across four states and 333 leased real estate assets, resulting in over $168 million in proceeds generated in a rapid 75-day turnaround, exceeding client expectations and providing proceeds to assist with covering the secured debt, thus solidifying Hilco's reputation as an industry leader in high-stakes, large-scale real estate transactions.

Joel Schneider, senior vice president at Hilco Real Estate said, "This portfolio sale represents more than just a successful transaction—it's a fresh start for these properties and the communities they serve. By transitioning into new retail spaces or innovative redevelopment projects, these sites have the potential to enhance the economic fabric of their neighborhoods in Arizona, California, Nevada and Texas. We're proud to have played a pivotal role in this bankruptcy sale, delivering an ideal outcome for our client while contributing to the growth and vitality of these regions."

The success of the bankruptcy sale was further supported by Hilco Consumer – Retail, who expertly handled the going-out-of-business sales for the inventory,  fixtures, furniture and equipment. Their seamless execution achieved a total of $245 million recovered and ensured the properties were sale-ready, enabling HRE to secure maximum returns for the real estate portfolio.

For more information about this sale or to inquire about other opportunities, please visit our website HilcoRealEstate.com or call (855) 755-2300.

About Hilco Real Estate
Hilco Real Estate (www.hilcorealestate.com) is headquartered in Northbrook, Illinois (USA). Hilco Real Estate is a national provider of strategic real estate disposition services. Acting as an agent or principal, Hilco Real Estate uses its experience to advise and execute strategies to assist clients in deriving the maximum value from their real estate assets. By leveraging multi-faceted sales strategies and techniques, aggressive repositioning and restructuring experience, a vast and motivated network of buyers and sellers, and substantial access to capital, Hilco Real Estate exceeds expectations even in the most complex transactions. 

Hilco Real Estate is part of Northbrook, Illinois based Hilco Global (www.hilcoglobal.com), the world's leading authority on maximizing the value of business assets by delivering valuation, monetization, advisory, and capital solutions to an international marketplace. Hilco Global operates more than twenty specialized business units offering services that include asset valuation and appraisal, retail and industrial inventory acquisition and disposition, real estate and strategic capital equity investments. 

SOURCE Hilco Real Estate