Discount retailer 99 Cents Only Store LLC is exploring a debt restructuring, and some bondholders have hired advisory firm Portage Point Partners for talks, Bloomberg Law reported. Portage’s retention follows the investors’ earlier engagement of Weil Gotshal & Manges for legal advice, Bloomberg News reported last August, after the company moved certain real estate assets out of creditors’ collateral packages. 99 Cents, meanwhile, is working with a cadre of advisers including Jefferies Financial Group Inc. and law firm Milbank. Moody’s Ratings downgraded 99 cents to Caa3 in November, citing factors including the retailer’s “much-weaker-than- anticipated operating performance.” The credit grader said that free cash flow was expected to remain negative. The company’s bond due in 2026 last traded in February around 34 cents the dollar, according to Trace data. 99 Cents operates nearly 400 stores in California and southwestern states.
