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.
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
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