Exhibit 99.1

         FACTORY 2-U STORES, INC. NAMES WILLIAM R. FIELDS, CHAIRMAN OF
         BOARD AND CHIEF EXECUTIVE OFFICER; FORMER PRESIDENT AND CEO OF
                            WAL-MART STORES DIVISION

              BOARD OF DIRECTORS ESTABLISHES LEAD DIRECTOR POSITION

     SAN DIEGO, CA, November 11, 2002 - FACTORY 2-U STORES, INC. (Nasdaq:  FTUS)
today  announced the  appointment  of William R. Fields as Chairman of the Board
and Chief Executive Officer of the Company. Mr. Fields replaces Mike Searles who
was named President and Chief Executive Officer of the Company in March 1998 and
Chairman of the Board in November  1998.  During his tenure  revenues  grew from
$300 million to over $580 million, while total stores increased from 164 to 258.

     Mr. Fields, 53, served as President and Chief Executive Officer of Wal-Mart
Stores  Division  during  1993-96.  He  originally  joined  Wal-Mart  in 1971 as
Assistant  Store  Manager  and was  promoted  over the next 24 years to  various
management  positions in strategic planning for store operations,  distribution,
transportation, finance, merchandising and sales.

     Most  recently  he  served  as  Chairman  and Chief  Executive  Officer  of
Blockbuster Entertainment Group (1996-97), President and Chief Executive Officer
of Hudson's Bay Company  (1997-99) and Chairman and Chief  Executive  Officer of
Apec China Asset Management, Ltd. (1999 to October 31, 2002).

     He  serves  on  various  professional  and  business  Board  of  Directors,
including,   The  University  of  Texas  Pan,   American   Foundation,   Lexmark
International,  The  ADX  Company-Advanced,  Data  Exchange  and  several  other
organizations. He received a BA, Economics and BS, Business at the University of
Arkansas in 1971.

     The Company also announced that the Board of Directors had  established the
position   of  Lead   Director   naming   Ronald   Rashkow  to  this  new  Board
responsibility.  Mr.  Rashkow has been a director  of Factory  2-U Stores  since
1997, and has been a principal of Chapman Partners,  LLC, an investment  banking
firm,  since its founding in September  1995.  For more than five years prior to
that,  he  served  as  Chairman  and  Chief  Executive  Officer  of  Handy  Andy
Improvement  Centers.  As  Lead  Director  he will  work  directly  with  Senior
Management on various strategic issues. In addition,  the Company announced that
the Board has initiated a search for two new outside directors.

     FACTORY 2-U STORES, INC. operates 261 "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 34 stores
in Arizona, 3 stores in Arkansas, 64 stores in southern California, 63 stores in
northern  California,  1 store in  Idaho,  5 stores  in  Louisiana,  3 stores in
Missouri,  8 stores in Nevada, 9 stores in New Mexico, 2 stores in Oklahoma,  15
stores in Oregon,  2 stores in Tennessee,  36 stores in Texas,  and 16 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

<PAGE>

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,  and other risks detailed in the
Company's Securities and Exchange Commission filings.

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