• Fred’s to Close 104 Underperforming Stores in the Southeast

    Source: Nasdaq GlobeNewswire / 16 May 2019 08:01:20   America/New_York

    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

    ADDRESSCITYSTATEZIP
    802 MAIN ST NEHANCEVILLEAL35077
    2146 S OATES STDOTHANAL36301
    105 MEMORIAL PARKWAY WESTALICEVILLEAL35442
    802 FORREST AVEEAST BREWTONAL36426
    17870 BALDWIN FARMS PLROBERTSDALEAL36567
    1734 KOWALIGA RDECLECTICAL36024
    35360 US HIGHWAY 231ASHVILLEAL35953
    715 E MAIN STPRATTVILLEAL36067
    8515 DOLLARWAY RDWHITE HALLAR71602
    57 S BROADVIEW STGREENBRIERAR72058
    6027 HIGHWAY 67HASKELLAR72015
    609 EAST MAIN STREETMELBOURNEAR72556
    15700 ARCH STLITTLE ROCKAR72206
    110 N MAIN STMALVERNAR72104
    1002 HIGHWAY 65 NMARSHALLAR72650
    2695 STATE HIGHWAY 77 SMARIONAR72364
    4212 E JOHNSON AVEJONESBOROAR72401
    406 W MAIN STMAGNOLIAAR71753
    406 HIGHWAY 425 SMONTICELLOAR71655
    428 S JAMES STJACKSONVILLEAR72076
    1701 COMMERCE RDPINE BLUFFAR71601
    652 HIGHWAY 365MAYFLOWERAR72106
    1302 HIGHWAY 64 EAUGUSTAAR72006
    198 N CURTIS AVEPEA RIDGEAR72751
    6522 CAROLINE STMILTONFL32570
    1535 OHIO AVE SLIVE OAKFL32064
    1435 S ORANGE AVEGREEN CV SPGSFL32043
    1442 TIFT AVE NTIFTONGA31794
    15 COLBERT BUSINESS PKWY WCOLBERTGA30628
    813 BOWENS MILL RD SEDOUGLASGA31533
    2601 S MAIN STMOULTRIEGA31768
    118 ROBERT B LEE DRIVELEESBURGGA31763
    3233 MARTHA BERRY HWY NWROMEGA30165
    650 W CHERRY STJESUPGA31545
    875 S MAIN STBAXLEYGA31513
    425 SIGMAN RD NWCONYERSGA30012
    1090 HIGHWAY 19 NTHOMASTONGA30286
    1001 N SLAPPEY BLVDALBANYGA31701
    4401 BEMISS ROADVALDOSTAGA31605
    122 HILLCREST PKWYDUBLINGA31021
    224 E. 4TH STREETOCILLAGA31774
    6109 HOUSTON RDMACONGA31216
    1021 HWY 45 NORTHEL DORADOIL62930
    6 N 4TH STBREESEIL62230
    1181 MAIN STMUNFORDVILLEKY42765
    1117 LINCOLN PARK RDSPRINGFIELDKY40069
    1701 N 18TH STMONROELA71201
    899 N HIGHWAY 171MOSS BLUFFLA70611
    2615 N 7TH STWEST MONROELA71291
    2017 E MADISON AVEBASTROPLA71220
    7616 HIGHWAY 80RUSTONLA71270
    306 MOREAU STMARKSVILLELA71351
    1882 AIRLINE DRBOSSIER CITYLA71112
    207 WASHINGTON STWEST MONROELA71292
    4828 SHREVEPORT HWYTIOGALA71260
    603 E WASHINGTON STHAYTIMO63851
    905 HIGHWAY 278 EAMORYMS38821
    605 S JACKSON STSTARKVILLEMS39759
    964 BROOKWAY BLVDBROOKHAVENMS39601
    1930 UNIVERSITY AVEOXFORDMS38655
    6 E COMMERCE STHERNANDOMS38632
    2040 E SHILOH RDCORINTHMS38834
    5760 HIGHWAY 80 EPEARLMS39208
    5266 OLD HIGHWAY 11HATTIESBURGMS39402
    12201 HIGHWAY 57VANCLEAVEMS39565
    1317 E MAIN STTUPELOMS38804
    25096 HIGHWAY 51CRYSTAL SPRINGSMS39059
    1898 SPILLWAY RDBRANDONMS39047
    401 E LEE STSARDISMS38666
    102 NORFLEET DRSENATOBIAMS38668
    7833 HWY 613MOSS POINTMS39563
    200 CLINTON BLVDCLINTONMS39056
    140 TRADE CENTER LNHAZLEHURSTMS39083
    8912 NORTHWEST DRSOUTHAVENMS38671
    150 PARK LANE DRRUTHERFORDTONNC28139
    2350 SPRINGS RD NEHICKORYNC28601
    200 SPARTANBURG HWYLYMANSC29365
    908 ANDERSON STPIEDMONTSC29673
    2404 WEST BLVDCHESTERFIELDSC29709
    618 SUMTER HWYBISHOPVILLESC29010
    106 JIMMY MARTIN CIRGASTONSC29053
    1521 JEFFERSON DAVIS HWYCAMDENSC29020
    1827 WILSON RDNEWBERRYSC29108
    209 BROAD STSUMTERSC29150
    505 LAURENS RDWOODRUFFSC29388
    1405 S HOME STUNION CITYTN38261
    6064 STAGE RDBARTLETTTN38134
    1109 SCOTTSVILLE RDLAFAYETTETN37083
    733 LAWRENCE STETOWAHTN37331
    2549 N CENTRAL AVEHUMBOLDTTN38343
    159 W TURN TABLE RDSPARTATN38583
    1103 FLORENCE RDSAVANNAHTN38372
    1797 HWY 100 EASTCENTERVILLETN37033
    425 W 7TH STCOLUMBIATN38401
    535 HIGH STHUNTINGDONTN38344
    522 S MAIN STSWEETWATERTN37874
    4589 QUINCE RDMEMPHISTN38117
    5028 S 1ST STMILANTN38358
    7143 WINCHESTER ROADMEMPHISTN38125
    6500 QUINCE ROADMEMPHISTN38119
    618 N MAIN STJACKSBOROTX76458
    801 TURKEY CREEK TRLBRIDGEPORTTX76426
    1000 W MAIN STHALLSVILLETX75650
    605 E US HIGHWAY 80WHITE OAKTX75693

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