National Stores
| Company type | Private |
|---|---|
| Industry | Retail |
| Founded | 1962 |
| Founder | Joseph Fallas |
| Defunct | 2023 |
| Fate | Ceased operations in continental United States |
| Headquarters | Los Angeles, California , United States |
Area served | United States, Puerto Rico |
Key people | Michael Fallas (final CEO and owner) |
| Products | Apparel (men, women, children, infants), lingerie, footwear, household merchandise |
Number of employees | 2200 (2022) |
National Stores Inc. was a privately held retail enterprise based in the Harbor Gateway district of Los Angeles, California. At its height in 2020, the company managed 88 outlets across five states, including Puerto Rico, and employed around 2,200 staff members nationwide as of January 2022. By 2023, it had completely shut down all operations within the continental United States.
The company operated under multiple brand identities such as Fallas, Fallas Paredes, Fallas Discount Stores, Factory 2-U, Conway, Weiner's, CW Price, Falas (in Puerto Rico), and Anna's Linen's by Fallas. Its product range included a combination of branded and private label apparel for men, women, children, and infants, as well as lingerie, footwear, and household merchandise. The Fallas Paredes name was specifically designed to cater to the Hispanic American demographic.
History
Established in 1962 by Joseph Fallas with a single outlet in downtown Los Angeles named Fallas Paredes, National Stores grew over several decades into a significant discount retail chain. Michael Fallas, Joseph’s son who ultimately became the company’s final CEO and owner, started working at the company as a stock boy at age five and later steered its strategic direction until its closure.
Expansion
National Stores broadened its market reach primarily through acquiring financially troubled retail chains. In 2001, it purchased 31 out of 97 Weiner's stores in the Houston area following Weiner's second bankruptcy within a five-year span.
In 2004, the company acquired San Diego-based Factory 2-U Stores, Inc. during its bankruptcy proceedings by buying 172 stores. Factory 2-U subsequently underwent liquidation that raised $28.5 million from the sale to a group led by National Stores.
Further growth came with the acquisition of the Conway Stores chain in January 2014, strengthening its position in discount retail.
In August 2015, National Stores assumed leases on 41 Anna's Linens locations through a debtor sale. Utilizing intellectual property rights acquired in the process, some stores were rebranded as Anna's Linens by Fallas, preserving core product lines while leveraging existing brand recognition.
Closings
During the second quarter of 2016, National Stores moved its regional distribution center from Otay Mesa to a new facility in Perris, California. The company signed a $26 million lease for ten years to centralize logistics operations and enhance supply chain efficiency.
In August 2018, National Stores filed for Chapter 11 bankruptcy protection and announced plans to shutter 74 of its then-344 stores as part of restructuring efforts. Beginning October 2018, liquidation sales expanded to include 184 Fallas and Factory 2-U locations.
Store shutdowns persisted into early 2022 with multiple Fallas Paredes outlets closing across various markets. The COVID-19 pandemic was identified as a key factor adversely affecting sales and accelerating these closures.
On August 31, 2022, National Stores terminated all remaining operations in Puerto Rico and the continental U.S., continuing restructuring and asset liquidation activities.
Celebrity Endorsement
In November 2014, National Stores collaborated with Latin American actress and singer Maite Perroni to introduce Coleccion Maite Perroni, a modern apparel collection influenced by her individual fashion sense and preferred designers, thereby broadening the company's product range and increasing its market attractiveness.