99 Cents Only
This retail company, which offers discount products, has found itself in a very difficult situation because of the competition from other companies such as Dollar Tree, Walmart, and Dollar General. It even reported a net loss of $27.1 million in December 2017. That is in addition to the $33.6 million in losses it has incurred in the second quarter and another $8.8 million in the first quarter. This 35-year-old company has tried to turn the tide.
99 Cents Only
It was sold to Ares Management, then to Canada Pension Plan, and eventually to a private family. It even got itself a new CEO, Jack Sinclair, replacing its former CEO, Geoffrey Covert. Despite the reports of it having positive same-store sales, the fact remains that 99 Cents Only is still in a losing game, just like GNC, the vitamin retailer.
GNC
According to RetailDrive in 2017, GNC’s gross revenue fell 3.4 percent year after year to approximately $2.5 billion, while it had debt worth $1.3 billion. The chief executive of GNC said that the company was doing well in China and on e-commerce in the second quarter of 2018. However, GNC also reported that in the second quarter of 2018, its top-line had experienced a drop in its sales and profits.
GNC
The company also reported that it would sell 40 percent of its shares to a Chinese pharma company. The said Chinese company will then produce, promote, sell, and distribute GNC products in China. Fred’s top-line sales have also experienced a nosedive.
