Retailer 99 Cents Only Store LLC is mulling filing for bankruptcy, Bloomberg reported.

Unable to offload assets, and with growing lease expenditures, the discounter is struggling to keep cash flowing in. 99 Cents is considering liquidation, bankruptcy or an out-of-court agreement, according to Bloomberg. Another option on the table is debt restructuring. The company is in talks with law firm Milbank and Jefferies Financial Group, but discussions are still ongoing.

The retailer’s dwindling funds may lead to a liquidity crunch, according to S&P Global. Stores are staying open in the meantime, as S&P estimates it is highly likely for the retailer to operate at a deficit until it figures out the best route to take. A Chapter 11 bankruptcy announcement could be announced as early as next month, according to Bloomberg.

99 Cents operates over 370 stores across California, Arizona, Nevada and Texas. The retailer spent last year monetizing assets to boost free cash flow. In October, it entered a sale-leaseback agreement for its 882K SF Los Angeles warehouse for $190M. It was one of the largest industrial deals in the city for that year. The store isn't a stranger to sale-leasebacks in L.A., as it completed three in 2021, amounting to $17M.

99 Cents did not immediately respond to Bisnow's request for comment.

While some discount retailers are fighting to survive, others are thriving.

Dollar Tree has been struggling to bounce back after acquiring Family Dollar in 2015. As a result, it's raising prices from $1 to $7 in some locations and announced its plan to close over 1,000 stores last month. Family Dollar is shuttering 600 stores and 370 more when leases expire in the next few years.

On the other side of the coin, discount grocer Aldi is pumping $9B into boosting its footprint by 800 stores within the next four years. Dollar General, with around 20,000 locations nationwide, is gunning to acquire that same amount by the end of the year.