99 Cents Only to Close All 48 Texas Stores

City of Commerce, Calif. 99 Cents Only Stores announced Thursday it will pull out of the Texas market, closing all 48 stores because operations are unprofitable.

99 Cents Only said stores in the "very challenging" Texas market were generating about half the revenue of its stores in other states.

The company said it will focus on its 230 remaining stores, which are in California, Arizona and Nevada. Those stores bring approximately 90% of its total revenue.

The company said its Texas stores lost $15 million in the year ended June 28, while bringing in $120 million in revenue. It said the closures will cost $40 million to $45 million.