National Stores

National Stores Inc. was a family-owned discount retail company founded in Los Angeles in 1962 by Joseph Fallas. The business began as a single downtown Los Angeles store operating under the Fallas Paredes name and developed into a multi-banner retailer serving value-conscious shoppers in the United States and Puerto Rico. Its principal retail identities included Fallas, Fallas Paredes, Fallas Discount Stores, Factory 2-U, Conway, Weiner's, CW Price, and, in Puerto Rico, the sometimes differently spelled Falas. The company also operated stores using the Anna's Linens by Fallas name after acquiring certain Anna's Linens intellectual-property rights and store leases. The retailer's assortment centered on low-priced branded and private-label merchandise. Its stores offered clothing for men, women, boys, girls, juniors, infants, and toddlers, together with lingerie, shoes, and household products. Fallas Paredes in particular was associated with serving Hispanic American communities, while the wider portfolio used different banners to address local markets and inherited store networks. The business model relied on discount pricing, broad assortments, opportunistic acquisition of distressed retail assets, and store-level formats that could be adapted to different regions. National Stores expanded through acquisitions during periods of distress in the U.S. off-price and department-store sectors. In 2001 it purchased 31 Houston-area Weiner's locations during that chain's liquidation following a second bankruptcy filing within five years. In 2004 it became involved in the disposition of San Diego-based Factory 2-U Stores after that company sought bankruptcy protection. A consortium headed by National Stores acquired interests connected with the sale of 172 Factory 2-U stores, although the Factory 2-U locations subsequently went through liquidation. National Stores later acquired the Conway chain in January 2014, broadening its store base and banner portfolio. The company also attempted to improve its logistics network. During the second quarter of 2016, it left a roughly 600,000-square-foot distribution center in Otay Mesa, California, and moved to a newer facility in Perris, California, signing a reported 10-year lease valued at $26 million. The move was intended to create a more centralized distribution position for its store network. National Stores entered Chapter 11 bankruptcy protection in August 2018. Its reorganization plan called for the closure of 74 of its 344 stores, while liquidation activity later expanded to 184 Fallas and Factory 2-U locations. The company continued operating through additional restructuring, but its remaining footprint contracted substantially. Further Fallas Paredes closures began in early 2022, with the COVID-19 pandemic cited as a factor in some shutdowns. On August 31, 2022, National Stores closed all remaining locations in Puerto Rico and the contiguous United States as part of a further restructuring and liquidation of assets. By 2023, it no longer operated stores in the continental United States. Michael Fallas, Joseph Fallas's son, was identified as the company's most recent chief executive and owner. National Stores therefore represented a relatively rare family-controlled discount-retail platform that grew by combining its original Fallas identity with acquired chains and distressed-store opportunities, before ultimately exiting physical retail operations.

National Stores began in 1962 when Joseph Fallas opened a single store in downtown Los Angeles under the Fallas Paredes name. From that local beginning, the family-owned company developed a discount-retail platform serving shoppers seeking low prices on apparel, footwear, lingerie, and household goods. Its merchandise mix combined recognized brands with private-label products and covered a wide range of consumer groups, from men's and women's clothing to children's, infant, and toddler apparel. The company expanded its reach through a collection of banners rather than relying on a single national retail identity. Fallas, Fallas Paredes, and Fallas Discount Stores formed the core of the business. Other names entered the portfolio through acquisitions or operating arrangements, including Factory 2-U, Conway, Weiner's, CW Price, and Anna's Linens by Fallas. In Puerto Rico, some stores used the name Falas, with one fewer 'l' than the mainland Fallas banner. Fallas Paredes was particularly associated with Hispanic American communities. National Stores repeatedly used distressed-retail transactions to expand. In 2001, as Weiner's entered liquidation following a second bankruptcy within five years, National Stores acquired 31 stores in the Houston area. In 2004, it participated in the disposition of Factory 2-U after that company filed for bankruptcy protection. A consortium headed by National Stores was connected with a transaction involving 172 Factory 2-U stores, although those locations later underwent liquidation. National Stores acquired Conway in January 2014, adding another established discount chain to its portfolio. In 2015, it acquired 41 Anna's Linens store leases through a debtor-sale auction and obtained intellectual-property rights that supported the Anna's Linens by Fallas format. The company sought to support its expanding network through a logistics change in 2016. It vacated a distribution center of approximately 600,000 square feet in Otay Mesa, California, and moved to a Perris, California, facility developed by Sares-Regis. The reported 10-year lease had a value of $26 million, and the relocation was intended to provide a more centralized distribution base. National Stores also pursued brand and merchandising initiatives. In 2014 it partnered with Mexican actress and recording artist Maite Perroni on Colección Maite Perroni, a contemporary fashion line based on her preferred designers and personal taste. The collaboration connected the retailer to a recognizable entertainment figure and complemented its apparel focus. Financial and operating pressures eventually forced retrenchment. In August 2018, National Stores sought Chapter 11 protection and proposed closing 74 of its 344 stores. Liquidation sales later covered 184 Fallas and Factory 2-U locations. Although the company continued operating after the bankruptcy filing, its store base continued to contract. Additional Fallas Paredes closures began in early 2022, and the COVID-19 pandemic was cited as one cause of some shutdowns. On August 31, 2022, National Stores closed all remaining stores in Puerto Rico and the contiguous United States while restructuring and liquidating its remaining assets. By 2023, it had no operating stores in the continental United States. Michael Fallas, Joseph Fallas's son, was identified as the company's most recent chief executive and owner.

• 2022

  Final store closures

  [1]National Storesen.wikipedia.org

  All remaining stores in Puerto Rico and the contiguous United States close on August 31.

• 2018

  Chapter 11 filing

  [1]National Storesen.wikipedia.org

  The company files for Chapter 11 protection and announces a reorganization involving store closures.

• 2016

  Distribution-center relocation

  [1]National Storesen.wikipedia.org

  National Stores moves its Southern California distribution operation from Otay Mesa to Perris.

• 2015

  Anna's Linens lease takeover

  [1]National Storesen.wikipedia.org

  The company takes over 41 Anna's Linens leases and obtains rights supporting the Anna's Linens by Fallas name.

• 2014

  Conway acquisition

  [1]National Storesen.wikipedia.org

  National Stores acquires the Conway chain.

• 2004

  Factory 2-U transaction

  [1]National Storesen.wikipedia.org

  National Stores participates in the sale of 172 Factory 2-U stores after the chain enters bankruptcy protection.

• 2001

  Weiner's store acquisition

  [1]National Storesen.wikipedia.org

  National Stores acquires 31 Houston-area Weiner's locations during liquidation proceedings.

• 1962

  Fallas Paredes is founded

  [1]National Storesen.wikipedia.org

  Joseph Fallas starts the business with a single downtown Los Angeles store.

Value-oriented, multi-banner discount retail focused on branded and private-label apparel, footwear, lingerie, and selected household merchandise. Fallas Paredes had a particular orientation toward Hispanic American shoppers.

• Discount apparel retail · 1962

  Fallas and Fallas Paredes

  The core National Stores formats offered low-priced branded and private-label merchandise for men, women, juniors, boys, girls, infants, and toddlers. Stores also carried lingerie, footwear, and selected household items. Fallas Paredes was especially associated with Hispanic American communities.

• Discount department retail

  Factory 2-U

  Factory 2-U was a discount-store banner added through National Stores' involvement in the 2004 bankruptcy-related sale of the chain. Its assortment fit the wider company's value-oriented apparel and general-merchandise model.

• Discount apparel retail

  Conway

  Conway became part of National Stores through a January 2014 acquisition. The banner broadened the company's portfolio of discount-oriented apparel stores and was subsequently affected by the company's later restructuring and closures.

• Household textiles retail · 2015

  Anna's Linens by Fallas

  This format followed National Stores' 2015 takeover of 41 Anna's Linens leases and acquisition of related intellectual-property rights. Some former Anna's Linens locations continued under the combined name and retained a basic household-linen assortment.

• Women's fashion · 2014

  Colección Maite Perroni

  Colección Maite Perroni was a contemporary fashion line introduced through a 2014 partnership with Mexican actress and musical artist Maite Perroni. The collection was described as reflecting Perroni's personal taste and inspiration from designers she favored.

• 2014Colección Maite Perroni

  United States · Puerto Rico

  National Stores partnered with Mexican actress and musical artist Maite Perroni to introduce a contemporary fashion collection shaped by her personal style and designer preferences.

  Outcome. The collection was launched as a branded fashion collaboration; no reliable source in the supplied material documents its later sales performance or duration.

  Source

• 2018

  Chapter 11 reorganization and store closuresStrategy

  Background

  National Stores faced operating and financial pressure after years of multi-banner expansion.

  Action taken

  The company filed for Chapter 11 protection and proposed closing 74 of its 344 stores. Liquidation sales later expanded to 184 Fallas and Factory 2-U locations.

  Aftermath

  The reorganization did not restore a durable store network. Further closures followed, culminating in the shutdown of all remaining continental U.S. and Puerto Rico locations in 2022.

  Source

• 2016

  Distribution-center relocationStrategy

  Background

  National Stores sought a more centralized logistics position for its growing and geographically dispersed store network.

  Action taken

  The company moved from a 600,000-square-foot facility in Otay Mesa to a new Perris, California, development under a 10-year lease.

  Aftermath

  The relocation was intended to improve distribution efficiency, although the retailer later entered bankruptcy and substantially reduced its store base.

  Lease value. $26 million (10-year lease signed in 2016)

  Source

• 2015

  Anna's Linens lease takeoverM&A

  Background

  Anna's Linens assets were being sold through a debtor-related process.

  Action taken

  National Stores took over 41 store leases and acquired intellectual-property rights, with some locations intended to operate as Anna's Linens by Fallas.

  Aftermath

  The transaction extended National Stores into a household-linen format while preserving part of the Anna's Linens retail identity.

  Source

• 2014

  Acquisition of ConwayM&A

  Background

  National Stores was expanding its portfolio of discount-retail banners.

  Action taken

  The company acquired the Conway store chain in January 2014.

  Aftermath

  Conway became one of the operating identities within National Stores' multi-banner retail platform.

  Source

• 2004

  Participation in Factory 2-U store saleM&A

  Background

  Factory 2-U filed for bankruptcy protection in February 2004, creating an opportunity to acquire or reorganize its store network.

  Action taken

  A consortium headed by National Stores arranged a transaction involving the sale of 172 Factory 2-U stores. The stores later went into liquidation.

  Aftermath

  National Stores gained a connection to the Factory 2-U store base, although the acquired locations did not remain a stable long-term operating network.

  Reported sale proceeds. $28.5 million (August 2004)

  Source

1. 1National Storesen.wikipedia.org
2. 2Archived Fallas official website snapshotweb.archive.org