Off-price apparel retailer Factory 2-U Stores Inc on Wednesday posted a second quarter net loss of $4.6 million, before a pre-tax charge of $2.1m, and said its CEO Mike Searles would quit as soon as a replacement is found. The operator of more than 250 stores said in the year-ago period it made $0.7m before recording a special charge of $1.6m. It added its quarterly sales fell eight per cent $128.1m from $139.3m and same-store sales slumped 8.7 per cent.