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factory 2-u fallas

This Factory 2-U store in Fresno is set to close in the wake of its parent company's bankruptcy filing. Image via Google

published on October 19, 2018 - 12:28 PM
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Fallas Discount Stores and Factory 2-U are the latest retail chains closing stores, with 10 in the Central Valley – four in Fresno alone – set to close.

In all, 184 stores in the two chains will be shuttered in 12 states and Puerto Rico after parent company National Stores filed for Chapter 11 bankruptcy in August.

In California, the company will close individual Factory 2U discount clothing stores in Delano, Porterville and Reedley, along with one of its three Fresno stores, at 5243 N. Blackstone Ave., and one of its two Bakersfield stores.

The single Factory 2U stores in Madera and Clovis aren’t on the closure list.

As for Fallas, which sells discount clothing home goods, the closure list includes all three Fresno stores, along with its one in Tulare and one of two in Bakersfield.

Factory 2-U’s Visalia store appears to not be on the chopping block.

In its initial filing for Chapter 11 protection in August, the family-owned parent company of the department stores announced it would close only 74 of its 344 stores. Included in that total is the Fallas Paredes chain of stores, one of which is located on Fulton Street in downtown Fresno.

The company hasn’t announced any plans to close stores in the Fallas Paredes chain, or any of the Ana’s Linens stores it bought through bankruptcy auction in 2015. Those stores were renamed Anna’sLinens by Fallas (with “Fallas” spelled with one “l” in Puerto Rico).

Officials at Fallas’ Gardena headquarters and the company that issued the closure list couldn’t immediately be reached for comment.

A report by Reuters news agency after the August bankruptcy filing stated that company officials blamed financial problems on “a negative environment for retailers; costs from its purchase of the 78-store East Coast chain Conway’s in 2014; lost revenue from hurricanes Harvey and Maria in 2017; and a data breach that exposed information for more than 552,000 [credit] cards in late 2017.”

It’s unclear how many jobs here and in the rest of the country will be lost as a result of the Fallas and Factory 2-U closings.

National Sales joins a growing list of large retail chains that have closed stores or announced closures due to financial woes and online competition.

They include Toys ‘R’ Us and Orchard Supply hardware, the first of which has shut all its stores while the latter is in the process of doing so.

Two other big chains, Sears and Kmart, which share ownership, recently have announced plans to close more of their stores – after having already closed several hundred in recent years – as they try to stay viable.

As for the Fallas and Factory 2-U closures, price cuts already have been initiated to liquidate merchandise.

“These stores are well known in the local markets where they have served their communities for years. The sale provides an opportunity for consumers to buy products at compelling discounts. Consumers are encouraged to shop early, stock up on school uniforms and get a head start on holiday shopping while selections are best,” states a press release posted online.


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