99 Cents Stores feels heat

Akre Capital Management, which reports holding a 13.4 percent stake in the retailer, wants to see a turnaround plan, including operating and financial goals, clear benchmarks and a timetable. That could include stuff like buying back shares and closing unprofitable divisions. In a letter to the board, Middleburg, Va-based Akre also wants management to be held accountable for the turnaround plan. Dum-dee-dum-dum. "We see significant potential for operating and capital improvements, but we are increasingly concerned about the ability of the current management team to deliver on that potential," said Akre Managing Member Charles T. Akre. But is anybody that surprised? The City of Commerce-based company, which once upon a time was a Wall Street darling, was trading today at $6.62. Its 52-week high is $16.21.

Backstory: David Gold, founder and former CEO of 99 Cents Only, is one of those guys who is hard not to like. As noted in an L.A. Business Journal interview some years back (before the company fell on hard times), Gold used to arrive at the office between 4 a.m. and 5 a.m. At the time, he has just turned in his 1993 Oldsmobile for a Prius. Here are some snippets from the interview he did with reporter Debbie Belgum:

Q: Do you shop at your own stores?

A: Sure. We buy whatever we need, paper products and soaps. We shop there all the time. A lot of the people at the stores don't know us. So we go in and shop and observe and see how it is run. Normally we shop at the one at Wilshire Boulevard and Fairfax, which is close to where we live.

Q: What's it like to work around here?

A: We try to have a lot of fun. No one here has secretaries, and no one has private parking places. We try the run the business like you run a household. Yesterday we were in Sacramento, where we went to the grand opening of our store, and we all stayed at Motel 6. It was clean, and right across the street.