Fred’s Inc. to close 104 more stores; many in TN, MS, & AR

Local Biz

MEMPHIS, Tenn., May 16, 2019 (GLOBE NEWSWIRE) — Fred’s, Inc. (NASDAQ: FRED) today announced it will begin to close an additional 104 underperforming stores as part of an ongoing effort to rationalize its store footprint.  

Fred’s decision to close additional underperforming stores follows a continued evaluation of the Company’s store portfolio, including historical and recent store performance and the timing of lease expirations, among other factors. Liquidation sales at the 104 stores designated for closure will begin today while the Company’s other stores will remain open. 

Joseph Anto, Fred’s Chief Executive Officer, stated, “These additional store closures are a difficult, but necessary step in the continued restructuring of Fred’s.”

Fred’s intends to close all 104 impacted stores by the end of June 2019. Fred’s has continued its partnership with Malfitano Advisors, LLC and SB360 Capital Partners to help manage the process and ensure a seamless experience for customers. 

A list of impacted stores may be found at the end of this release.

Forbearance Agreement
Fred’s also announced today that it has entered into a forbearance agreement and amendment with its lenders under the Company’s revolving credit facility, as described in more detail in a Form 8-K filed with the Securities and Exchange Commission.  

About Fred’s Inc.
Since 1947, Fred’s, Inc. has been an integral part of the communities it serves throughout the southeastern United States. Fred’s mission is to make it easy AND exciting to save money. Its unique discount value store format offers customers a full range of value-priced everyday items, along with terrific deals on closeout merchandise throughout the store. For more information about the Company, visit Fred’s website at www.fredsinc.com.

Forward Looking Statement
Comments in this news release that are not historical facts are forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. A reader can identify forward-looking statements because they are not limited to historical facts or they use such words as “outlook,” “guidance,” “may,” “should,” “could,” “believe,” “anticipate,” “project,” “plan,” “expect,” “estimate,” “objective,” “forecast,” “goal,” “intend,” “committed,” “continue,” or “will likely result” and similar expressions that concern the Company’s strategy, plans, intentions or beliefs about future occurrences or results. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties. Forward-looking statements include, but are not limited to, statements about future financial and operating results, the Company’s plans, objectives, business outlook, priorities, expectations and intentions, expectations for sales growth, comparable sales, earnings and performance, shareholder value, capital expenditures, cash flows, demand for products, share repurchases, strategic initiatives, including those relating to store closures and acquisitions and dispositions by the Company and the expected impact of such transactions on our strategic and operational plans and financial results, and any statement of an assumption underlying any of the foregoing and other statements that are not historical facts. Although we believe that the expectations, opinions, projections and comments reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and we can give no assurance that such statements will prove to be correct. A wide variety of potential risks, uncertainties and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to risks and uncertainties associated with: (i) the competitive nature of the industries in which we operate; (ii) our turnaround plan and the implementation of our strategic initiatives, and their impact on our sales, costs and operations; (iii) our store closures and the related sales of inventory and real estate issues; (iv) our divestitures; (v) utilizing our existing and new stores and the extent of our pharmacy department presence in new and existing stores; (vi) conditions affecting the retail sector as a whole; (vii) our reliance on a single supplier of pharmaceutical products; (viii) our pharmaceutical drug pricing; (ix) reimbursement rates and the terms of our agreements with pharmacy benefit management companies; (x) consolidation in the healthcare industry; (xi) our private brands; (xii) the seasonality of our business and the impact of adverse weather conditions; (xiii) operational, supply chain and distribution difficulties; (xiv) merchandise supply and pricing; (xv) consumer demand and product mix; (xvi) delayed openings and operating new stores and distribution facilities; (xvii) our employees; (xviii) risks relating to payment processing; (xix) our computer systems, and the processes supported by our information technology infrastructure; (xx) our ability to protect the personal information of our customers and employees; (xxi) cyber-attacks; (xxii) changes in governmental regulations; (xxiii) the outcome of legal proceedings, including claims of product liability; (xxiv) insurance costs; (xxv) tax assessments and unclaimed property audits; (xxvi) current economic conditions; (xxvii) our indebtedness and our ability to satisfy our debt obligations and obtain continued forbearance or waivers for any defaults; (xxviii) the terms of our existing and future indebtedness, including the covenants set forth in the documents governing such indebtedness; (xxix) any acquisitions we may pursue and the ability to effectively integrate businesses that we acquire; (xxx) our ability to remediate the material weaknesses in our internal controls over financial reporting and otherwise maintain effective internal controls over financial reporting; (xxxi) our largest stockholder holding a significant percentage of our outstanding equity; (xxxii) our ability to pay dividends and/or repurchase shares of our Class A voting common stock; (xxxiii) our ability to attract and retain talented executives; (xxxiv) any strategic alternatives that we decide to pursue, if any; (xxxv) our ability to continue as a going concern; and (xxxvi) the factors listed under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and any subsequent quarterly filings on Form 10-Q filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date made. The Company undertakes no obligation to release revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required to be reported under the rules and regulations of the Securities and Exchange Commission. 

LIST OF STORE LOCATIONS TO BE CLOSED (OR CLICK HERE)

ADDRESS

CITY

STATE

ZIP

802 MAIN ST NE 

HANCEVILLE

AL

35077

2146 S OATES ST

DOTHAN

AL

36301

105 MEMORIAL PARKWAY WEST

ALICEVILLE

AL

35442

802 FORREST AVE

EAST BREWTON

AL

36426

17870 BALDWIN FARMS PL

ROBERTSDALE

AL

36567

1734 KOWALIGA RD

ECLECTIC

AL

36024

35360 US HIGHWAY 231

ASHVILLE

AL

35953

715 E MAIN ST

PRATTVILLE

AL

36067

8515 DOLLARWAY RD

WHITE HALL

AR

71602

57 S BROADVIEW ST

GREENBRIER

AR

72058

6027 HIGHWAY 67

HASKELL

AR

72015

609 EAST MAIN STREET

MELBOURNE

AR

72556

15700 ARCH ST

LITTLE ROCK

AR

72206

110 N MAIN ST

MALVERN

AR

72104

1002 HIGHWAY 65 N

MARSHALL

AR

72650

2695 STATE HIGHWAY 77 S

MARION

AR

72364

4212 E JOHNSON AVE

JONESBORO

AR

72401

406 W MAIN ST

MAGNOLIA

AR

71753

406 HIGHWAY 425 S

MONTICELLO

AR

71655

428 S JAMES ST

JACKSONVILLE

AR

72076

1701 COMMERCE RD

PINE BLUFF

AR

71601

652 HIGHWAY 365

MAYFLOWER

AR

72106

1302 HIGHWAY 64 E

AUGUSTA

AR

72006

198 N CURTIS AVE

PEA RIDGE

AR

72751

6522 CAROLINE ST

MILTON

FL

32570

1535 OHIO AVE S

LIVE OAK

FL

32064

1435 S ORANGE AVE

GREEN CV SPGS

FL

32043

1442 TIFT AVE N

TIFTON

GA

31794

15 COLBERT BUSINESS PKWY W

COLBERT

GA

30628

813 BOWENS MILL RD SE

DOUGLAS

GA

31533

2601 S MAIN ST

MOULTRIE

GA

31768

118 ROBERT B LEE DRIVE

LEESBURG

GA

31763

3233 MARTHA BERRY HWY NW

ROME

GA

30165

650 W CHERRY ST

JESUP

GA

31545

875 S MAIN ST

BAXLEY

GA

31513

425 SIGMAN RD NW

CONYERS

GA

30012

1090 HIGHWAY 19 N

THOMASTON

GA

30286

1001 N SLAPPEY BLVD

ALBANY

GA

31701

4401 BEMISS ROAD

VALDOSTA

GA

31605

122 HILLCREST PKWY

DUBLIN

GA

31021

224 E. 4TH STREET

OCILLA

GA

31774

6109 HOUSTON RD

MACON

GA

31216

1021 HWY 45 NORTH

EL DORADO

IL

62930

6 N 4TH ST

BREESE

IL

62230

1181 MAIN ST

MUNFORDVILLE

KY

42765

1117 LINCOLN PARK RD

SPRINGFIELD

KY

40069

1701 N 18TH ST

MONROE

LA

71201

899 N HIGHWAY 171

MOSS BLUFF

LA

70611

2615 N 7TH ST

WEST MONROE

LA

71291

2017 E MADISON AVE

BASTROP

LA

71220

7616 HIGHWAY 80

RUSTON

LA

71270

306 MOREAU ST

MARKSVILLE

LA

71351

1882 AIRLINE DR

BOSSIER CITY

LA

71112

207 WASHINGTON ST

WEST MONROE

LA

71292

4828 SHREVEPORT HWY

TIOGA

LA

71260

603 E WASHINGTON ST

HAYTI

MO

63851

905 HIGHWAY 278 E

AMORY

MS

38821

605 S JACKSON ST

STARKVILLE

MS

39759

964 BROOKWAY BLVD

BROOKHAVEN

MS

39601

1930 UNIVERSITY AVE

OXFORD

MS

38655

6 E COMMERCE ST

HERNANDO

MS

38632

2040 E SHILOH RD

CORINTH

MS

38834

5760 HIGHWAY 80 E

PEARL

MS

39208

5266 OLD HIGHWAY 11

HATTIESBURG

MS

39402

12201 HIGHWAY 57

VANCLEAVE

MS

39565

1317 E MAIN ST

TUPELO

MS

38804

25096 HIGHWAY 51

CRYSTAL SPRINGS

MS

39059

1898 SPILLWAY RD

BRANDON

MS

39047

401 E LEE ST

SARDIS

MS

38666

102 NORFLEET DR

SENATOBIA

MS

38668

7833 HWY 613

MOSS POINT

MS

39563

200 CLINTON BLVD

CLINTON

MS

39056

140 TRADE CENTER LN

HAZLEHURST

MS

39083

8912 NORTHWEST DR

SOUTHAVEN

MS

38671

150 PARK LANE DR

RUTHERFORDTON

NC

28139

2350 SPRINGS RD NE

HICKORY

NC

28601

200 SPARTANBURG HWY

LYMAN

SC

29365

908 ANDERSON ST

PIEDMONT

SC

29673

2404 WEST BLVD

CHESTERFIELD

SC

29709

618 SUMTER HWY

BISHOPVILLE

SC

29010

106 JIMMY MARTIN CIR

GASTON

SC

29053

1521 JEFFERSON DAVIS HWY

CAMDEN

SC

29020

1827 WILSON RD

NEWBERRY

SC

29108

209 BROAD ST

SUMTER

SC

29150

505 LAURENS RD

WOODRUFF

SC

29388

1405 S HOME ST

UNION CITY

TN

38261

6064 STAGE RD

BARTLETT

TN

38134

1109 SCOTTSVILLE RD

LAFAYETTE

TN

37083

733 LAWRENCE ST

ETOWAH

TN

37331

2549 N CENTRAL AVE

HUMBOLDT

TN

38343

159 W TURN TABLE RD

SPARTA

TN

38583

1103 FLORENCE RD

SAVANNAH

TN

38372

1797 HWY 100 EAST

CENTERVILLE

TN

37033

425 W 7TH ST

COLUMBIA

TN

38401

535 HIGH ST

HUNTINGDON

TN

38344

522 S MAIN ST

SWEETWATER

TN

37874

4589 QUINCE RD

MEMPHIS

TN

38117

5028 S 1ST ST

MILAN

TN

38358

7143 WINCHESTER ROAD

MEMPHIS

TN

38125

6500 QUINCE ROAD

MEMPHIS

TN

38119

618 N MAIN ST

JACKSBORO

TX

76458

801 TURKEY CREEK TRL

BRIDGEPORT

TX

76426

1000 W MAIN ST

HALLSVILLE

TX

75650

605 E US HIGHWAY 80

WHITE OAK

TX

75693

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