Recognizing and Unlocking Value
SECOND AVENUE CAPITAL PARTNERS PROVIDES $20 MILLION SENIOR SECURED CREDIT FACILITY TO THE NEW FALLAS STORES
Facility funds transaction to preserve 2,500 jobs and keep 85 stores open
BOSTON, Massachusetts – November 27, 2018 – Second Avenue Capital Partners, LLC, (www.secondavecp.com) announced the closing of a $20,000,000 asset based credit facility to help fund the purchase and on-going working capital needs of a new entity under the banner of Fallas Stores. This new facility was integral to closing a transaction for the purchase of 85 stores from the original National Stores during a bankruptcy mandated auction.
Founded by Joseph Fallas in 1962, National Stores began as a single store operating in downtown Los Angeles under the banner “Fallas Paredes.” The new Fallas Stores will remain headquartered in Harbor Gateway, CA. This 85-store acquisition preserves more than 2,500 jobs in the many communities they serve across 7 states and Puerto Rico.
The new Fallas Stores will be a familiar destination to shoppers, offering value-priced apparel, bedding, household supplies, décor items, and other general merchandise. To give customers continuity in selection and their shopping experience, the new enterprise will look to the same vendor community for support and the products Fallas customers want at accessible pricing.
Michael Fallas, CEO of the new Fallas Stores, wanted a lender that could be more than just a source of capital. “We found exactly what we needed in Second Avenue Capital Partners,” said Mr. Fallas. “We were looking for a lender committed to our business plan. What we found in SACP was a lender that understood retailers and the challenges we all encounter in today’s difficult retail environment. That retail connection has immeasurable value to us. SACP isn’t just a lender, they’re a partner. They’ve already demonstrated they’re as committed to the success of these stores as we are.”
Chris O’Connor, President of Second Avenue Capital Partners, is proud of the role SACP played in this new phase for Fallas Stores. “Fallas Stores is well known in the communities they serve. Michael came to us with his plan for carrying the business forward, and we understood his vision. We provided the financing and flexibility he needed to put his plan into motion. With our connections to the retail space, keeping 85 stores moving forward and preserving 2,500 jobs is tremendous motivation. We’re excited about the opportunity to work with Michael and position the new Fallas Stores to thrive for years to come.”
“We saw the importance of this transaction, not just to the many associates working in these 85 stores, but also to the communities they serve,” said Mark Gallivan, Managing Director of Second Avenue Capital Partners. “Michael’s enthusiasm for this Company, and his determination to make it work pushed us to put all of the pieces in place and accommodate his short timeframe.”