The parent company of Fallas retail chain and Anna’s Linen’s has filed for bankruptcy and 74 of 344 stores is expected to start closing sales by August 9.
National Stores, Inc. announced on Monday that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Declare. The cases are currently pending.
“National Stores, historically a profitable company, is committed to improving its financial health and returning to profitability. Our goal is to emerge a reorganized Company poised to compete in an evolving industry so that we can continue to serve the communities where we are rooted,” said Michael Fallas, National Stores Chief Executive Officer.
This just weeks after an arson fire at the Santa Maria’s Fallas retail store on July 31, 2018.
The National Stores, Inc says that they have also suffered financial setbacks from certain underperforming stores and that this has been exacerbated by severe weather in various regions, such as Hurrican Maria which resulted in prolonged, temporary closures to damaged stores and loss of revenue. The Company says they also suffered further financial losses resulting from the acquisition of Conway Stores. The strain on liquidity was worsened by the aftermath of the Company’s data breach as access to operating funds diminished.
“Our employees can be assured that they will continue to receive their salaries and benefits, customers can continue to purchase the items they want at the exceptional prices they rely on, all of our stores will continue to honor gift cards, and we will maintain gift card sales at our remaining stores,” said Fallas.
Stores are reported to start closing sales on August 9, 2018, and will last for three months.
According to court documents, the Fallas store in Lompoc and the Anna’s Linens in Oxnard are slated to close. The Fallas in Santa Maria is not listed to be closed.