-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SEQZl1TJvxOuSqrYmzwbXkewuYk3owWeobaNu4KZuXkaoSuAfzDCugnuCkpta6wS ib7BegoqCCaW9rRqHm3n/Q== 0000813775-04-000006.txt : 20040122 0000813775-04-000006.hdr.sgml : 20040122 20040122164244 ACCESSION NUMBER: 0000813775-04-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040122 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040122 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FACTORY 2 U STORES INC CENTRAL INDEX KEY: 0000813775 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-FAMILY CLOTHING STORES [5651] IRS NUMBER: 510299573 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10089 FILM NUMBER: 04537856 BUSINESS ADDRESS: STREET 1: 4000 RUFFIN ROAD STREET 2: 6TH FLR CITY: SAN DIEGO STATE: CA ZIP: 92123-1866 MAIL ADDRESS: STREET 1: 4000 RUFFIN ROAD STREET 2: 6TH FLOOR CITY: SAN DIEG STATE: CA ZIP: 92123-1866 FORMER COMPANY: FORMER CONFORMED NAME: FAMILY BARGAIN CORP DATE OF NAME CHANGE: 19940202 FORMER COMPANY: FORMER CONFORMED NAME: DRS INDUSTRIES INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: LONGWOOD GROUP LTD DATE OF NAME CHANGE: 19920527 8-K 1 aform8k012204.txt FORM 8-K FURNISHED FOR PRESS RELEASE DATED 012204 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 22, 2004 FACTORY 2-U STORES, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE - -------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) 1-10089 51-0299573 - ------------------------ ------------------------------------ (Commission File Number) (IRS Employer Identification No.) 4000 RUFFIN ROAD, SAN DIEGO, CALIFORNIA 92123 - -------------------------------------------------------------------------------- (Address of principal executive offices) Registrant's telephone number, including area code: (858) 627-1800 NA - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) The information in this Current Report on Form 8-K, including the exhibit, is furnished pursuant to Item 9 and shall not be deemed "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. In addition, the information in this Current Report on Form 8-K, including the exhibit, shall not be deemed to be incorporated by reference into the filings of Factory 2-U Stores, Inc. under the Securities Act of 1933, as amended. Item 9. Regulation FD Disclosure On January 22, 2004, we announced that we have filed a motion with the United States Bankruptcy Court in Wilmington, Delaware seeking authorization to close 44 stores. The full text of this press release is furnished with this report as Exhibit 99.1. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this current report to be signed on its behalf by the undersigned hereunto duly authorized. FACTORY 2-U STORES, INC. January 22, 2004 By:/s/ John W. Swygert - -------------------- ------------------- Date John W. Swygert Chief Financial Officer Exhibit Index Exhibit No. Description ----------- ----------- 99.1 Press release of Factory 2-U Stores, Inc. dated January 22, 2004. EX-99 3 ex99pr012204.txt PRESS RELEASE DATED 012204 Exhibit 99.1 FACTORY 2-U STORES, INC. TO FOCUS ON Portfolio of 195 Stores With Strong Potential For Profitable Growth Files Motion With Bankruptcy Court to Close 44 Unprofitable Locations Liquidation Sales at Closing Stores Expected to Begin by Mid-February Store Closings Expected to Have Significant Positive Impact On Company's Financial Performance SAN DIEGO, CA, January 22, 2004 - 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 Bankruptcy Court in Wilmington, Delaware 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 under Chapter 11 of the U.S. Bankruptcy Code on January 13, 2004 in order to implement a comprehensive operational and financial restructuring of its business. 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 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, 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 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 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 Indiana 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, 63 stores in northern California, 1 store in Idaho, 8 stores in Nevada, 9 stores in New Mexico, 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 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 of our common stock by Nasdaq, and other risks detailed in the Company's Securities and Exchange Commission filings. # # # Contacts: MEDIA ONLY Michael Freitag or Joseph Kuo Kekst and Company (212) 521-4800 INVESTORS Factory 2-U Investor Information (888) 201-9603 or James K. White Kehoe, White & Co., Inc. (562) 437-0655 -----END PRIVACY-ENHANCED MESSAGE-----