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Factory 2-U store in Ceres closing
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Factory 2-U, located in the building what once housed the Sears Outlet and Zody’s, will be closing soon.

The Hatch Road Factory 2-U store on Hatch Road is among 184 Factory 2-U and Fallas stores being closed across 12 states and Puerto Rico.

National Stores announced the store closings as part of its Chapter 11 bankruptcy filing. The store closing process is being conducted by a joint venture comprising Hilco Merchant Resources, Gordon Brothers and SB360 Capital Partners.

Every product in these 184 stores has been marked down, with reductions of 30 percent in products such as school uniforms, apparel, shoes and backpacks.

The joint venture released the full list of stores to be closed in a statement, but their exact closing date was not disclosed. Other stores in the area include ones in Modesto, Turlock, Delano, Stockton (two stores), Porterville, Fresno (three locations), Reedley and Bakersfield.

The affected stores are in Arizona, California, Florida, Georgia, Illinois, Massachusetts, North Carolina, New Mexico, Nevada, Oklahoma, South Carolina, Texas, and Puerto Rico.

In a press release, the company said it had ample liquidity to fund operations and has received a commitment for up to approximately $108 million in debtor-in-possession financing from its existing lenders.

The company said its bottom line has suffered setbacks from some under-performing stores, which were exacerbated by severe weather in various regions.

The company also suffered financial losses from its acquisition of 44 Conway Stores in 2014 for an undisclosed price.

In court documents, the company said it has between 200 and 999 creditors. Some of its major creditors, all located in New York, include: Armouth International, owed $15.6 million; One Step Up, owed $10.3 million; Louise Paris, owed nearly $4 million and Seven Apparel, owed $3.9 million.

National Stores was started in 1962 by Michael Fallas’s father, Joseph, in a single downtown Los Angeles store. It is known for its value-priced clothing, which often sells below $10 to $20.

A spokesperson for the joint venture said, “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.”