Police officers escort people out after sealing off the area near Trader Joe's supermarket.
At around 6:30 p.m., Atkins agreed to handcuff himself and walked out the front door, surrounded by four of the hostages. He then shot and wounded a second woman, forced her into the Camry, owned by Madison, and drove away.
The 28-year-old man, who was being chased by police after he was suspected of repeatedly shooting his grandmother and another woman in a separate part of the city, crashed his auto outside Trader Joe's, where he exchanged gunfire with police and entered the store.
According to the Los Angeles Times, the incident began as a auto chase pursuit from Hollywood that ended with the man's vehicle crashing next to the Trader Joe's store.
Helicopter footage showed the tense moments as police rescued hostages from windows and other exits.
A woman was taken out of the auto and was rushed to a nearby hospital. Officials said they had 18 ambulances and 100 firefighters staged at the scene. After about 30 minutes, police came inside and rushed some of the customers out, he said. Officers in SWAT gear ran while carrying children away from the store.
Armed officers stormed the outlet and pushed towards the back of the store where the suspected had barricaded himself in a separate room. The woman killed in the Trader Joe's was identified as Melyda Corado, a family member told ABC News.
Meanwhile, as the suspect entered the store, employees and customers inside scrambled for cover.
After an hours-long standoff, in which police were communicating with the suspect, he eventually requested handcuffs and cuffed himself before surrendering, police said. Officers tracked the vehicle, gave chase and exchanged gunfire with the man, who crashed into a pole outside the supermarket and then ran inside.
"Then this guy comes out of the auto and starts running toward TJs", Kohles said.
Kohles says the man ran toward the back of the store and yelled at people inside but he never heard any more gunshots.
During the incident Los Angeles Police tweeted: "We can confirm there is an active barricaded suspect within a Trader Joes in Silverlake".
In the gun battle that followed, the store's manager was killed as she stepped into the parking lot.
The gunfire shattered the glass doors and the gunman ran inside and "down the middle aisle", Kohles said.
President Donald Trump tweeted that he is "Watching Los Angeles possible hostage situation very closely" and that Los Angeles police officers were working with federal law enforcement. They would not comment on whether shots were fired or if any hostages had been taken.
Another witness, Devin Field, tweeted that he was going inside the Trader Joe's when the vehicle crashed and the man "got out shooting".
Witness Devin Field said it appeared traffic prevented the suspect from escaping police when he crashed in front of the store. Gunman got out and started shooting at the cops.
"It's just devastating. I can't believe it", she said, noting how Madison "raised him".