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.
Contacts
Fred’s Inc:
Jen Ehlers
817-369-5772
jen.ehlers@fredsinc.com
LIST OF STORE LOCATIONS TO BE CLOSED
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 |