Could 99 Cents Only Stores be saved? Boss of rival dollar chain steps in to buy half the shops set to be shut

There is a potential lifeline for half of the 99 Cents Only Stores facing closure - as another chain is planning to buy the brand. 

On Thursday, the retailer announced it will close all 371 of its locations - blaming high inflation and rising theft as the reason for the closures. 

Mark Miller, CEO of Pic 'N' Save Bargains and former president of Big Lots, is leading a group of investors, including former 99 Cents Store executives, in a bid to acquire the Southern California stores. 

'It's a match, that we hope, made in heaven,' he told Eyewitness News - as he said he was hoping to take over 143 of the stores in Southern California.

'What I want to make sure is that yes, there's a big food business at the 99 Cents stores and that we continue as far as great goods, great prices... great bargains, great treasure hunt items.'

Half of the 99 Cents Only Stores set to be shuttered could be saved as another chain looks to buy up the brand

Pic 'N' Save CEO Mark Miller (pictured) is leading a group of investors, including former 99 Cents Store executives, in a bid to acquire the Southern California stores 

The West Coast brand - which has shops in California, Texas, Arizona and Nevada - announced the news lwithout giving a timeline for the closures.  

But Miller is leading efforts to rescue most of its 143 Southern California locations and give them a brand refresh.

He explained: 'I want more branded goods at great prices. What I hope is going to happen here is that you're going to see a new, better, more unique 99 Cents store.'

He added that he was hoping the deal could be sealed soon.

Pic 'N' Save was founded in 1950 and was later bought by Consolidated Stores and converted into Big Lots. Miller revived the brand in 2020.

99 Cents' closure comes amidst a widespread 'retail apocalypse' which is seeing bricks-and-mortar stores struggle to combat rampant theft and increasingly tight margins. 

In a statement, interim CEO Mike Simoncic said the decision was due to '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 headwind.'

Walmart has shut three in 2024 and will shut another three in weeks.

Pic 'N' Save was founded in 1950 and was later bought by Consolidated Stores and converted into Big Lots. Miller revived the brand in 2020

Miller is leading efforts to rescue most of its 143 Southern California locations and give them a brand refresh

Best Buy permanently closed ten stores this month - and now has 100 fewer shops than before the pandemic.

Meanwhile, Dollar Tree has announced plans to shut 1,000, Macy's has said it will cull 150 - a third of its total - and drug store Rite Aid is shuttering 77.

Last year, major US chains including Target, CVS, Macy's and Rite Aid were behind nearly 3,000 stores closures in 2023.

While all shops are struggling to keep up with hot inflation, it affects budget retailers worst due to their already-tight margins.

Dollar Tree said last month it was raising the maximum price cap on its goods to $7.

Meanwhile Trader Joe's has upped the price of a single banana from 19 to 23 cents. It equates to a 21 percent increase.

The annual rate of inflation rose again in March to 3.5 percent, according to data released by the US Labor Department today.