Second Avenue Capital Partners closed a $20 million asset based credit facility to help fund the purchase and on-going working capital needs of Fallas Stores.
The 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, with the acquisition preserving more than 2,500 jobs across 7 states and Puerto Rico.
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, said, “We found exactly what we needed in Second Avenue Capital Partners. 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.”
“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,” said Chris O’Connor, president of Second Avenue Capital Partners. “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.”
