Fred’s to Close an Additional 129 Stores and Hold Inventory Clearance Sales Across All Stores
Source: Nasdaq GlobeNewswire / 12 Jul 2019 14:00:37 Europe/London
Encourages Customers to Take Advantage of Unique Value-Priced Shopping Opportunities
Pharmacies to Remain Open
MEMPHIS, Tenn., July 12, 2019 (GLOBE NEWSWIRE) -- Fred’s, Inc. (NASDAQ: FRED) today announced that it will close an additional 129 retail stores and hold inventory clearance sales across all stores in an effort to refocus its product mix, simplify its store portfolio and repay debt.
Following the planned 129 closures, Fred’s will have approximately 80 retail stores remaining, centered primarily around the Company’s distribution center in Dublin, GA. Lists of stores that will be closed and that will remain open are included below. Fred’s may evaluate re-launching certain closed stores in the future under a new operating model, with an updated assortment. The Company expects the proceeds from the inventory clearance sales will be used to repay outstanding indebtedness under its revolving credit agreement.
All pharmacies (including the 69 within the 129 stores referenced above) will remain open and the Company will continue to fulfill prescriptions at its pharmacy locations, as it continues to pursue the sale of its remaining pharmacy locations and opportunities to monetize pieces of its real estate portfolio. The Company currently operates 166 pharmacies.
Joseph Anto, Fred's Chief Executive Officer, stated, "While it is never easy to make decisions that impact our valued employees and customers, this initiative represents another necessary step in our continued efforts to stabilize our business by simplifying our store portfolio and product assortment.”
Mr. Anto continued, "We are pleased to present our loyal customers the unique and compelling opportunity to purchase heavily discounted items for a limited time. We encourage shoppers to take advantage of these unmatched deals, and stock up on items that may be permanently removed from Fred’s shelves, come August."
Fred’s has partnered with Malfitano Advisors, LLC and SB360 Capital Partners to help manage the clearance sale process.
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 Statements
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 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; (xxxvi) our ability to meet all applicable Nasdaq requirements; and (xxxvii) the factors listed under "Risk Factors" in the Company's most recent Annual Report on Form 10-K, the Company’s most recent Quarterly Report on Form 10-Q 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 CLOSING STORE LOCATIONS
ADDRESS CITY STATE ZIP 120 SPRING BRANCH DR ALEXANDRIA AL 36250 13210 NORTH WINTZELL AVE BAYOU LA BATRE AL 36509 307 NORTH MULBERRY AVE BUTLER AL 36904 300 PARK DR CLANTON AL 35046 340 VIRGINIA AVE DALEVILLE AL 36322 996 HIGHWAY 203 ELBA AL 36323 7250 US-43 GUIN AL 35563 916 21ST STREET HALEYVILLE AL 35565 280 HIGHWAY 78 WEST JASPER AL 35501 525 4TH AVENUE NE RED BAY AL 35582 16100 HWY 72 ROGERSVILLE AL 35652 9574 HWY-18 VERNON AL 35592 808 WEST COLLIN RAYE DR DEQUEEN AR 71832 611 US 65 S DUMAS AR 71639 1301 NORTH ILLINOIS AVE HARRISBURG AR 72432 #2 FOREST PARK AVE HOLIDAY ISLAND AR 72631 1218 US-82 LAKE VILLAGE AR 71653 801 SOUTH HIGHWAY 77 MANILA AR 72442 438 SOUTH ALABAMA ST MARIANNA AR 72360 103 DAWSON ST MARKED TREE AR 72365 614 SOUTH MAIN ST NASHVILLE AR 71852 303 EAST MAIN ST PIGGOTT AR 72454 2809 SOUTH CAMDEN RD PINE BLUFF AR 71603 1309 S LINCOLN ST STAR CITY AR 71667 10 EAGLE ST VILONIA AR 72173 507 WEST PINE WARREN AR 71671 HWY 49 TWIN CITY S/C WEST HELENA AR 72390 320 HWY 14 SOUTH YELLVILLE AR 72687 1718 SOUTH WAUKESHA ST BONIFAY FL 32425 935 EAST HIGHWAY 90 MADISON FL 32340 1150 N JEFFERSON ST MONTICELLO FL 32344 WILLIAMS ST ALMA GA 31510 214 HWY 49 BYRON GA 31008 1009 NORTH 3RD AVE CHATSWORTH GA 30705 93 BUSHROD JOHNSON AVE CHICKAMAUGA GA 30707 HWY 17 NORTH DARIEN GA 31305 203 N MAIN ST GREENSBORO GA 30642 124 8TH STREET HELENA (MCRAE) GA 31037 534 BELL CREEK RD HIAWASSEE GA 30546 2001 BILLY TUCKER CL HOGANSVILLE GA 30230 719 SOUTH DAVIS ST NASHVILLE GA 31639 1567 N CHEROKEE RD SOCIAL CIRCLE GA 30025 204 EAST KELLY ST SYLVESTER GA 31791 923 N BYPASS EAST WASHINGTON GA 30673 605 N MAIN ST WRENS GA 30833 213 WEST RANDOLPH STREET MCLEANSBORO IL 62859 260 KEEN STREET BURKESVILLE KY 42717 1938 MAIN STREET CADIZ KY 42211 509 NORTH MAIN ST TOMPKINSVILLE KY 42167 1311 NORTH HAZEL STREET ARCADIA LA 71001 5604 HWY 3 BENTON LA 71006 5590 BARKSDALE BLVD BOSSIER CITY LA 71112 109 CHEVY LN BUNKIE LA 71322 8155 US 165 COLUMBIA LA 71418 522 LINCOLN RD EAST MONROE LA 71203 1075 HWY 80 EAST HAUGHTON LA 71037 902 WEST MAIN ST HOMER LA 71040 715 1ST AVE KINDER LA 70648 2019 FARMERVILLE HWY RUSTON LA 71270 7139 US HWY 61 ST FRANCISVILLE LA 70775 1320 SR-2 STERLINGTON LA 71280 125 E MAIN ST EAST PRARIE MO 63845 499 WEST HWY 162 PORTAGEVILLE MO 63873 441 N FOURTH ST BALDWYN MS 38824 2675 HWY 15 BAY SPRINGS MS 39422 520 NORTH HAYDEN ST BELZONI MS 39038 403 W CALHOUN ST BRUCE MS 38915 229 NORTH UNION CANTON MS 39046 300 SOUTH PEARLE STREET CARTHAGE MS 39051 456 HWY 24 CENTREVILLE MS 39631 304 W MAIN ST CHARLESTON MS 38921 236 DESOTO AVE CLARKSDALE MS 38614 1211 SOUTH FIR AVE COLLINS MS 39428 14916 SR-16 DEKALB MS 39328 300 SR-9 EUPORA MS 39744 101 MANSKER DRIVE FLORA MS 39071 1409 ADAMS STREET FULTON MS 38843 2616 HWY 82 EAST GREENWOOD MS 38930 615 HWY 25 SOUTH IUKA MS 38852 6230 OLD CANTON RD JACKSON OLD CANTON MS 39211 951 MAIN ST LEAKESVILLE MS 39451 502 SOUTH CHURCH LOUISVILLLE MS 39339 1039 MARTIN LUTHER KING DRIVE MARKS MS 38646 1618 DELAWARE AVE MCCOMB MS 39648 3050 SIMPSON, HWY 13 MENDENHALL MS 39114 1509 BROAD STREET WEST MONTICELLO MS 39654 31 SGT PRENTISS DRIVE NATCHEZ MS 39120 126 WEST MAIN STREET NEW ALBANY MS 38652 1388 SOUTH MAIN ST POPLARVILLE MS 39470 1635 COLUMBIA AVE PRENTISS MS 39474 509 HWY 589 PURVIS MS 39475 111 WILLOW BROOK DRIVE SALTILLO MS 38866 710 CHURCH ROAD SOUTHAVEN MS 38671 2110 GOODMAN ROAD EAST SOUTHAVEN MS 38671 4233 ROCKY BRANCH ROAD SUMRALL MS 39482 1038 US 61 TUNICA MS 38676 409 DUNCAN STREET WATER VALLEY MS 38965 603 MIDDLETON RD WINONA MS 38967 118 MAIN STREET ANDREWS NC 28901 102 MCREYNOLDS ST CARTHAGE NC 28327 1528 SOUTH LAFAYETTE ST SHELBY NC 28152 763 SR-28 ABBEVILLE SC 29620 311 EAST MAIN ST ANDREWS SC 29510 116 RIVER STREET BELTON SC 29627 227 APPLE SQUARE PLAZA EDGEFIELD SC 29824 297 SOUTH HWY 20 WILLIAMSTON SC 29669 1200 WEST CHURCH ST ALAMO TN 38001 11888 HWY 70 ARLINGTON TN 38002 1560 DONELSON PKWY DOVER TN 37058 5897 EAST MAIN ST ERIN TN 37061 535 WEST MAIN HENDERSON TN 38340 88 LOVELVILLE HWY LINDEN TN 37096 890 E MAIN ST LIVINGSTON TN 38570 3561 MAYNARDVILLE HWY MAYNARDVILLE TN 37807 87 SOUTH MAIN ST MCKENZIE TN 38201 1290 LAMAR AVE MEMPHIS LAMAR TN 38104 250 E STRATTON AVE MONTEREY TN 38574 501 TENNESSEE AVE NORTH PARSONS TN 38363 327 N MAIN ST PIKEVILLE TN 37367 16280 US-64 SOMERVILLE TN 38068 730 EVERETT STREET TIPTONVILLE TN 38079 2045 US 45 TRENTON TN 38382 307 HWY 64 EAST WAYNESBORO TN 38485 5305 NEW HIGHWAY 31 E WESTMORELAND TN 37186 4928 HWY 70 WHITE BLUFF TN 37187 218 WATSON BLVD DAINGERFIELD TX 75638 375 W HWY 84 FAIRFIELD TX 75840 850 N BEAULAH ST HAWKINS TX 75765 113 NORTH GREER BLVD PITTSBURG TX 75686
LIST OF STORE LOCATIONS REMAINING OPEN
ADDRESS CITY STATE ZIP 24 CAMDEN BYPASS CAMDEN AL 36726 19580 N 3RD ST CITRONELLE AL 36522 21665 HWY 25 COLUMBIANA AL 35051 17916 HWY 280 DADEVILLE AL 36853 505 US-80 DEMOPOLIS AL 36732 206 GREENSBORO AVE EUTAW AL 35462 320 BELLEVILLE STREET EVERGREEN AL 36401 804 CLEVELAND ST HEADLAND AL 36345 731 ROSS ST HEFLIN AL 36264 47950 US 78 LINCOLN AL 35096 50 TALLADEGA ST LINEVILLE AL 36266 720 N WASHINGTON ST LIVINGSTON AL 35470 821 SOUTH FOREST AVE LUVERNE AL 36049 165 BESSEMER SUPER MIDFIELD AL 35228 4559 HWY 25 MONTEVALLO AL 35115 1001 CROSSROADS PLAZA DR MOODY AL 35004 505 NORTH MAIN OPP AL 36467 3920 US-80 PHENIX CITY AL 36869 110 SUTTON SQUARE RAINBOW CITY AL 35906 160 WEST MAIN ST RAINSVILLE AL 35986 213 PARK DRIVE WARRIOR AL 35180 5132 JOE FRANK HARRIS PKWY ADAIRSVILLE GA 30103 316 EAST WASHINGTON ASHBURN GA 31714 3764 EAST HWY 84 BLACKSHEAR GA 31516 200 E LOUISE ST CLARKSVILLE GA 30523 413 N DUVAL CLAXTON GA 30417 1900 AUBURN AVE COLUMBUS GA 31906 185 S ELM ST COMMERCE GA 30529 101 NORTH WEBSTER STREET CUTHBERT GA 39840 839 FORRESTER DRIVE DAWSON GA 39842 409 WEST 3RD ST DONALSONVILLE GA 39845 705 US-80 EAST DUBLIN GA 31027 103 FOURTH AVE EASTMAN GA 31023 726 SR-144 GLENNVILLE GA 30427 106 BILL CONNECTOR PKW GRAY GA 31032 525 BROAD STREET HAWKINSVILLE GA 31036 2872 TOBACCO RD HEPHZIBAH GA 30815 369 S CHURCH ST HOMERVILLE GA 31634 307 W PATTON ST LAFAYETTE GA 30728 265 LAKES BLVD LAKE PARK GA 31636 512 S VALDOSTA RD LAKELAND GA 31635 11747 AUGUSTA BLVD LAVONIA GA 30553 1705 PHILAMENA RD SOUTH LEESBURG GA 31701 978 E BROAD ST METTER GA 30439 506 NORTH HIGHWAY 25 MILLEN GA 30442 506 SPAULDING RD MONTEZUMA GA 31063 601 S MASON ST MOUNT VERNON GA 30445 139 WEST BRAZELL ST REIDSVILLE GA 30453 604 NORTHSIDE DR WEST STATESBORO GA 30458 518 WEST OGEECHEE ST SYLVANIA GA 30467 12596 N MAIN ST TRENTON GA 30752 1310 WEST MORTON OAKLAND CITY IN 47660 708 WASHINGTON ST FRANKLINTON LA 70438 200 NORTH ELM ST HAUGHTON LA 71037 2866 BIENVILLE HWY RINGGOLD LA 71068 475 HWY 6 EAST BATESVILLE MS 38606 504 NORTH 2ND STREET BOONEVILLE MS 38829 15 EAST STONEWALL RD BYHALIA MS 38611 340 SR-12 KOSCIUSKO MS 39090 5186 HIGHWAY 80 EAST MORTON MS 39117 7122 WILL ROBBINS HWY NETTLETON MS 38858 7105 COCKRUM STREET OLIVE BRANCH MS 38654 170 HIGHWAY 15 NORTH PONTOTOC MS 38863 706 CITY AVE NORTH RIPLEY MS 38663 250 HWY 19 SOUTH BRYSON CITY NC 28713 677 US 19 BURNSVILLE NC 28714 70 NEW CLYDE HWY CANTON NC 28716 1346 NORWOOD ST SW LENOIR NC 28645 3606 MAIN ST BAMBERG SC 29003 401 S ALABAMA AVE CHESNEE SC 29323 2544 HWY 25 SOUTH GREENWOOD SC 29646 518 E GREER ST HONEA PATH SC 29654 198 STUCKEY ST JOHNSONVILLE SC 29555 480 NELSON BLVD KINGSTREE SC 29556 437 NORTH MAIN ST SALUDA SC 29138 181 WEST CAROLINA AVE VARNVILLE SC 29944 9810 HWY 57 SOUTH COUNCE TN 38326 8487 SR-22 DRESDEN TN 38225 829 W MAIN ST MONTEAGLE TN 37356 100 PIONEER VILLAGE DR MOUNTAIN CITY TN 37683