CORRECTING and REPLACING Factory 2-U Stores, Inc. To Focus on Portfolio of 195 Stores with Strong Potential for Profitable Growth.Business Editors CORRECTION...by Factory 2-U Factory 2-U is a chain of department stores that are located mostly in the Western United States selling clothing, domestics, and merchandise, founded in 1962, originally private owned. They have 6000 employees with more than 10 stores. Stores, Inc. SAN DIEGO--(BUSINESS WIRE)--Jan. 22, 2004 In BW5628 issued Jan. 22, 2004: In the "Store Closing List," the store located at 101 East Appleway, Coeur D'Alene Coeur d'Alene, city, United States Coeur d'Alene (kûrdəlān`), city (1990 pop. 24,563), seat of Kootenai co., N Idaho, near the Wash. line; inc. 1907. should be listed under Idaho (sted Indiana). The corrected release reads: FACTORY 2-U STORES, INC. TO FOCUS ON PORTFOLIO OF 195 STORES WITH STRONG POTENTIAL FOR PROFITABLE GROWTH -- FILES MOTION WITH BANKRUPTCY COURT bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. TO CLOSE 44 UNPROFITABLE LOCATIONS -- LIQUIDATION SALES liquidation sale liquid (US) n → Verkauf m wegen Geschäftsaufgabe AT CLOSING STORES EXPECTED TO BEGIN BY MID-FEBRUARY -- STORE CLOSINGS EXPECTED TO HAVE SIGNIFICANT POSITIVE IMPACT ON COMPANY'S FINANCIAL PERFORMANCE Factory 2-U Stores, Inc. today announced that, following a comprehensive review of the performance and positioning of its entire store base, it has filed a motion with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Bankruptcy Court in Wilmington, Delaware Wilmington is the largest city in the state of Delaware and is located at the confluence of the Christina River and Brandywine Creek, near where the Christina flows into the Delaware River. seeking authorization to close 44 stores. The Company intends to focus on its remaining portfolio of 195 stores that it believes are well positioned to achieve sustained profitable growth over the long term. (A list of the closing stores follows this announcement.) Factory 2-U voluntarily filed a petition to reorganize re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. under Chapter 11 of the U.S. Bankruptcy Code Bankruptcy Code may refer to:
Norman G. Plotkin, Chief Executive Officer of Factory 2-U, said: "Our core objectives in the Chapter 11 process are to enhance liquidity, reduce costs and focus on generating profitable growth. The decision to close these stores was difficult, but it is an important step in addressing our challenges and ultimately improving our financial and operational performance. We believe the 195 stores we will operate going forward are situated in convenient, high-traffic locations with attractive local demographics. We will continually monitor the performance of these stores very closely to ensure that each is well positioned to execute our strategy of providing our customers with quality apparel and housewares house·wares pl.n. Cooking utensils, dishes, and other small articles used in a household, especially in the kitchen. at a great value." He continued, "We believe there are many reasons to be excited about Factory 2-U's potential for future success. Customer loyalty and support remain strong, as demonstrated by the nearly five percent increase in total transactions on a year-to-year basis. During the same period, the average number of items per transaction increased by more than 10 percent. Our objective is to refine our merchandise mix so that we enhance the profitability of these transactions. We believe we now have the right merchandising plans and marketing initiatives - and the right team to implement them - to drive profitable growth and achieve a substantial improvement in the Company's financial performance." Liquidation sales at the closing stores are expected to begin by mid-February. Affected associates will be paid as normal until their locations close. In its motion filed today, Factory 2-U is seeking authorization to identify and retain an agent to assist with the inventory clearance sales at the closing locations. Dennis I. Simon, Managing Principal of Crossroads, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , the Company's restructuring and financial advisor, said: "One of the principal reasons that Factory 2-U chose to file for Chapter 11 was its need to rationalize ra·tion·al·ize v. 1. To make rational. 2. To devise self-satisfying but false or inconsistent reasons for one's behavior, especially as an unconscious defense mechanism through which irrational acts or feelings are made to appear its store base. All of these 44 stores are unprofitable and, in some cases, they are located in outlying regions, which has made it difficult to manage and stock them efficiently. By closing these stores, the Company expects to improve its cash flow significantly and receive a stronger return from its continuing stores. In addition, the Company expects to achieve substantial cost savings by disposing of the leases for certain of these stores, as well for nine previously closed stores and two distribution centers." He continued, "It has been gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. to be able to work with a seasoned leadership team at Factory 2-U that not only understands the Company's problems, but knows how to fix them. I am confident in their ability to greatly enhance the Company's performance." Store Closing List The following is a list of stores that Factory 2-U intends to close: Arkansas 3901 South University Avenue, Little Rock Arizona 10745 E. Apache Trail, Apache Junction 2250 E. U.S. Hwy 60, Globe 6912 East Hampton Avenue, Mesa 1841 E Highway 69, Prescott California 8031 Watt Ave., Antelope 801 East Avenue, Chico 5479 Philadelphia Street, Chino 3975 Grand Avenue, Chino 1480-B Azusa Avenue, Covina 5229 Hazel Avenue, Fair Oaks 1955 West Texas Street, Fairfield 39203 Fremont Hub, Fremont 31660 Grape Street, Lake Elsinore 605 North H Street, Lompoc 5422 West Sunset Blvd., Los Angeles 10835 Olson Drive, Rancho Cordova 3309-A Rosecrans Street, San Diego 380 S. Mountain Avenue, Upland 2523 South Mooney Blvd., Visalia 57220 Twenty-Nine Palms, Yucca Valley Idaho 101 East Appleway, Coeur D'Alene New Mexico 1511 Goff Boulevard SW, Albuquerque 9311 Coors Blvd., Albuquerque Nevada 862 S. Boulder Highway, Henderson Oklahoma 3364 East 51st Street, Tulsa Oregon 320 N.E. Agness Avenue, Grants Pass 10890 S.E. Oak Street, Milwaukie 2787 Lancaster Drive Northeast, Salem 9009 SW Hall Blvd., Tigard Texas 5655 Eastex Freeway, Beaumont 2200 North Yarbrough, El Paso 5567 Alameda Avenue, El Paso 9813 Dyer Street, El Paso 300 Greenspoint Mall, Houston 12790 Willowchase Dr., Houston 1011 Wall Street, Longview 324 Pasadena Town Square, Pasadena 945 S. W. W. White Road, San Antonio 1428 Wooded Acres Drive, Waco Washington 1161 E. Wishkah Street, Aberdeen 4215 Wheaton Way, Bremerton 2200 S. 314th Street, Federal Way 2905 N. Kennewick Ave, Kennewick About Factory 2-U Stores, Inc. Factory 2-U Stores, Inc. currently operates 243 "Factory 2-U" off-price retail stores which sell branded casual apparel for the family, as well as selected domestics and household merchandise at prices which generally are significantly lower than the prices offered by its discount competitors. The Company operates 32 stores in Arizona, 2 stores in Arkansas, 65 stores in southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, , 63 stores in northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern , 1 store in Idaho, 8 stores in Nevada, 9 stores in New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). , 1 store in Oklahoma, 14 stores in Oregon, 34 stores in Texas, and 14 stores in Washington. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, and actual results could differ materially from the Company's present expectations. Among the important factors that could cause actual results to differ materially from those indicated in the forward-looking statements are: customer demand and trends in the off-price apparel industry, the effect of economic conditions, the impact of competitive openings and pricing, supply constraints or difficulties, the inherent uncertainties of proceedings under Chapter 11 of the Bankruptcy Code, the effects of the delisting Delisting When the stock of a company is removed from a stock exchange. Notes: Reasons for delisting include violating regulations and/or failure to meet financial specifications set out by the stock exchange. of our common stock by Nasdaq, and other risks detailed in the Company's Securities and Exchange Commission filings. |
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