CITY OF COMMERCE, CA-The locally based 99 Cents Only Stores chain has received a proposal from the Schiffer/Gold family and Leonard Green & Partners to take it private at $19.09 per share. The Schiffer/Gold family owns approximately 33% of the 99 Cents chain's outstanding common stock, and the letter states that Schiffer/Gold is prepared to contribute a substantial portion of the existing stock ownership as part of the proposed transaction.

The 99 Cents chain, which operates 283 stores in four states, pointed out in a news release that the proposal letter "states that it is not a binding commitment or obligation on the part of the Schiffer/Gold family or LGP." It also states that any transaction would be subject to due diligence, receipt of financing commitments, reaching agreement among members of the Schiffer/Gold family and LGP with respect to the terms of a shareholders' agreement and reaching agreements with the management of the 99 Cents Only on their ongoing roles as managers of the company.

Among other points, the letter also states that the Schiffer/Gold family has not made any commitment of exclusivity with LGP relating to a transaction. As of Friday, the board of 99 Cents Only said that it had only received the proposal and it had not yet evaluated the bid. The board expects to form a special committee of independent directors to consider the proposal, and that committee would retain independent financial advisers, along with legal counsel.

Founded in 1982, 99 Cents Only Stores operates its 283 stores in California, Texas, Arizona and Nevada. The company reported that consolidated diluted earnings per share increased 9% on a year-over-year basis to $0.38 in its most recent quarterly financial filing, with net income rising 9% to $26.6 million.

Retail sales for the company’s consolidated operations increased by 1.5% to $354.1 million and same-store sales decreased 0.7%.

Eric Schiffer, the company's CEO, said at the time that the chain expected to open four new stores during the current quarter, resulting in a total of nine net new stores and a store growth rate of approximately 3% for fiscal 2011.

For fiscal 2012, the chain plans to open 16 net new stores which equates to a store growth rate of approximately 6%.The vast majority of the planned new stores in fiscal 2012 will be in California.