Exhibit 99.1



                  FACTORY 2-U STORES, INC. NAMES NORMAN DOWLING
                             CHIEF FINANCIAL OFFICER

 Former Vice President of Finance of PETCO Brings 22 Years of High-Level Finance
                   Experience Across Multiple Industry Sectors


     SAN DIEGO,  March 22,  2004 - Factory  2-U Stores,  Inc.  (FTUSQ.PK)  today
announced that Norman Dowling has joined the Company as Executive Vice President
and Chief Financial  Officer,  effective  immediately.  Mr.  Dowling,  41, joins
Factory 2-U Stores from PETCO Animal Supplies,  Inc.  (Nasdaq:  PETC), a leading
specialty retailer of premium pet foods, supplies and services,  where he served
as Vice President, Finance since November 1999.

     Mr.  Dowling  brings 22 years of  experience  in  finance  across  multiple
industry  sectors.  Prior to joining  PETCO,  he served as CFO and  Secretary of
CinemaStar Luxury Theaters,  Director of Finance at Advanced  Marketing Systems,
and Director of Mergers & Acquisitions  at Medical  Imaging  Centers of America,
Inc. A native of Dublin,  Ireland, Mr. Dowling has a Bachelor of Commerce degree
from University College Dublin.

     Norman G. Plotkin,  Chief  Executive  Officer of Factory 2-U Stores,  said,
"With his high-level financial experience spanning the retail, entertainment and
marketing sectors, and responsibilities that have ranged from financial planning
to corporate governance, Norman has a diverse set of skills and experiences that
will be immensely  useful to our company as we proceed with our  reorganization.
We are pleased to have him as a member of our team."

     Factory 2-U Stores also announced  that, on March 16, 2004, Mr. Plotkin was
elected to the Company's Board of Directors.

About Factory 2-U Stores, Inc.

     Factory 2-U Stores, Inc. operates 195 "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 currently operates
28 stores in Arizona,  56 stores in southern  California,  55 stores in northern
California,  7 stores in Nevada, 7 stores in New Mexico, 10 stores in Oregon, 23
stores in Texas,  and 9 stores  in  Washington.  As  previously  announced,  the
Company recently closed 44 stores.



     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.

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Contacts:

MEDIA ONLY

         Michael Freitag
         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