City of Commerce, Calif. Ninety Nine Cents Only Stores Inc., announced Tuesday it has suspended a plan to close its operations in Texas and has rejected a plan by its chairman to buy them.
The move, said the company in a statement, comes after an 8.6% rise in comp-store sales for the four weeks ended Jan. 24.
It also will continue to operate its Texas distribution center to support the remaining stores.
"It is too early to tell what the current sales results could mean in terms of Texas financial results and return on investment," the company statement said. "Although management is unsure how strongly the challenging economy may affect sales trends in Texas, it does believe 99 Cents Only Stores, similar to other value-focused consumer businesses such as Wal-Mart and McDonald's, is well positioned to benefit from the recessionary economy."