The city of Los Angeles will provide informational resources to 99-cent-only workers who have lost their jobs as a result of impending discount store closures, Mayor Karen Bass announced Friday.
She added that the support will extend to people who work in more than 30 of the company's stores in the city. 99 Cents Only Stores, which operates 371 discount stores in California, Texas, Arizona and Nevada, announced last week that it would close all of its locations and end its business after 42 years.
“We must do everything we can to support Angelenos during this difficult time,” Bass said.
The city did not specify how many workers would be eligible to receive the support. In its bankruptcy filing, the Commerce City-based retailer said it had 10,874 employees.
The Los Angeles Department of Economic and Workforce Development has already activated a rapid response team to support these efforts, Bass said.
The team, along with the Mayor's Office of Community Engagement, will visit stores in the process of liquidation, to make information and materials available to staff.
Resources include daily virtual presentations in English and Spanish to help workers understand unemployment insurance. The city's 14 WorkSource centers are also available to answer questions about layoffs and future employment opportunities.
The city is also coordinating with Los Angeles County to make resources available to 99-cent-only workers throughout the region, Bass said.
99 Cents Only announced on April 4 that it would wind down its business, blaming a series of factors that included the COVID-19 pandemic, rising theft and crime, competition, increases in operating costs caused by rising inflation and the cost of servicing its debt. The privately held company also noted big jumps in minimum wages, especially in California, where 265 of its stores are located.
Going out of business sales began the next day and are expected to end on April 19, with store-wide prices reduced by up to 30%.
