99 Cents Only won't mess with Texas

CITY OF COMMERCE, Calif. 99 Cents Only Stores has decided not to exit the Texas market, enabling more than 1,000 employees to keep their jobs.

Eric Schiffer, CEO of 99 Cents Only Stores, said, “We are very pleased to announce to our over 999 devoted and hardworking Texas 99ers in Texas that 99? Only Stores will be staying in Texas. In these challenging economic times, it is wonderful that they can have peace of mind that they can provide for their families with career growth opportunities and benefits.”

The company opened its first stores in Texas in 2003 and currently operates 33 stores in Texas, comprised of 18 stores in Houston, 9 stores in the Dallas-Fort Worth Metroplex, 4 stores in San Antonio and 1 store in Harlingen and Bryan, Texas. In September 2008, shortly after hurricane Ike and after years of unprofitable operations in Texas, the company decided to close all of its 48 Texas stores and to cease operations in the state. In February, the company noted improvements in store sales and potential beneficial opportunities resulting from a recessionary economy and announced that instead of closing all Texas stores, it would close approximately 1/3 of its stores and that it would suspend exit plans for up to 6 months to re-evaluate its Texas operations.

Schiffer continued, "We have developed a business plan for Texas and we currently expect to achieve a small positive contribution to earnings from our Texas operations starting in the first quarter of next year, and we believe that it no longer makes sense to incur the costs of exiting the Texas market. We intend to maintain sufficient management staff and support professionals in Texas to achieve and then increase profitability, and to oversee proper utilization and potential redeployment of our real estate assets there.”