#fred's

Fred's store closings 2019: Discount chain shuttering 159 stores Discount chain Fred's is joining the growing list of retailers shuttering stores amid slumping sales. The Memphis-based company announced Thursday that it would close 159 underperforming stores by the end of May with "going out of business" sales starting Thursday as it looks to reduce its store footprint and "evaluate strategic alternatives." The retailer said in a statement that it retained investment banking advisory firm PJ Solomon to assess its options "to maximize value" and hired liquidation firms Malfitano Advisors and SB360 Capital Partners "to help manage the process and ensure a seamless experience for customers." When companies announce they are considering "strategic alternatives," it often involves a potential sale or restructuring. The closing stores represent nearly 29% of Fred's 557 stores and are located in 13 states, with Mississippi, Alabama, Georgia and Tennessee losing the most stores.   Sales at Fred's stores open at least a year fell 4.9% in the first nine months of 2018, compared with a year earlier. "After a careful review, we have made the decision to rationalize our footprint by closing underperforming stores, with a particular focus on locations with shorter duration leases," Fred’s CEO Joseph Anto said in the statement. "Most of these stores have near‐term lease expirations and limited remaining lease obligations." Shares of Fred's were down nearly 5.8% at $1.97 in midday Thursday trading after the announcement. Store closings 2019: Payless, Gymboree and Victoria's Secret are just some of the brands closing locations The start of a new Sears era?: The retailer announces openings, not closings  

Discount chain Fred's is joining the growing list of retailers shuttering stores amid slumping sales.  

The liquidation

Also Thursday, SB360 Capital Partners, which is managing the closing sales, announced the firm was launching “Total Inventory Blowout” clearance sales at an additional 360 Fred's stores. Discounts are 5% to 20% off the lowest ticketed price with some exclusions at both the closing locations and stores holding clearance sales, SB360 officials told USA TODAY.  “Fred’s stores bring the everyday necessities closer to home, and they do it at discount prices,” said Ziggy Schaffer, an executive vice president with SB360. “The store closing and total inventory blowout events will bring value on top of value.” With most of Fred’s stores in smaller communities, Aaron Miller, an executive vice president with SB360, said they’re expecting “a pretty strong response from the customers.” “Fred’s has a loyal following and we’re expecting increased traffic,” Miller said. “The merchandise will go quickly.” SB360 has managed liquidation sales for more than 50 years and is an affiliate of the Schottenstein family, which also owns DSW Inc. and American Eagle Outfitters. It recently handled the Charlotte Russe liquidation. Fred’s will remain “a one-stop shop with continued replenishment of food staples,” Miller said, noting milk, eggs, beverages and frozen items would be restocked throughout the sale. Only 37 stores, or 7%, of stores are not included in either the clearance or liquidation sales.  

What happened

In 2017, a deal for Fred's to acquire hundreds of Rite Aid or Walgreens stores collapsed when a mega-merger between the pharmacy giants deteriorated. Months later, Fred's announced it was considering "strategic transactions and alternatives for certain non-core assets," including real estate and specialty pharmacy business. Last September, Fred’s reached an agreement to sell the pharmacy patient prescription files and related pharmacy inventory of 179 Fred’s stores located across 10 southeastern states to Walgreens for $165 million.  . With Thursday's announcement, Fred's said it is "continuing to pursue the sale of its remaining pharmacy assets as part of its previously announced plan." Fred's is part of a wave of recent retail closures. Based on figures from global marketing research firm Coresight Research, bankruptcy filings and company earnings reports, more than 6,500 stores are slated to close locations in 2019. The brick-and-mortar downturn is expected to continue, according to a new report released this week from UBS Securities. Investment bank analysts said 75,000 more stores would need to be shuttered by 2026 if e-commerce “penetration rises from 16% currently to 25%.”  

What's next for Fred's

In Fred's statement Thursday, the company said PJ Solomon would do a "thorough evaluation" of the company's plan and look for alternatives. "There can be no assurance that the strategic review will result in any specific action, or any assurance as to its outcome or timing," the statement said. The number of employees affected was not immediately available. “Decisions that impact our associates in this way are difficult, but the steps we are announcing are necessary,” Anto said. “We will make every effort to transition impacted associates to other stores where possible.” There are no plans to close a majority or all Fred's stores or to file for bankruptcy, The Wall Street Journal reported last week.   

Stores closings

Liquidation is getting underway at 159 Fred's stores in 13 states with discounts ranging from 5% to 20% on most items with some exclusions. The stores are expected to close by the end of May.  

Alabama

Anniston: 1544 Greenbrier Ln Branchville: 13254 Hwy 411 Center Point: 1683 Center Point Pkwy Centre: 710 Cherokee Plz Enterprise: 621 Boll Weevil Cir Florence: 321 N Court St Florence: 4150 Florence Blvd Foley: 1200 N Mckenzie Street Guntersville: 1477 Sunset Dr Hoover: 3317 Lorna Rd Hueytown: 3056 Allison Bonnett Memorial Dr Lanett: 622 Cherry Dr Marion: 1549 Highway 5 S Monroeville: 1318 S Highway 21 Byp Roanoke: 3077 Highway 431 Russellville: 13150 Highway 43 Sylacauga: 212 W Fort Williams St Talladega: 65364 Hwy 77 Tuscumbia: 1401 Woodmont Dr  

Arkansas

Bryant: 3395 Highway 5 N Cabot: 207 S 2nd St Conway: 245 Oak St Conway: 1125 Morningside Dr El Dorado: 430 S Bradley Ave Forrest City: 2227 N Washington St Harrison: 617 Highway 62 65 N Hope: 535 N Hervey St Jonesboro: 2308 S Caraway Rd Mena: 1201 Highway 71 S Mountain Home: 509 Hwy 62 E. Newport: 1705 Malcolm Ave Osceola: 1324 W Keiser Ave Paragould: 1723 W Kings highway Prescott: 1426 W 1st St N Russellville: 3303 W Main Pl Searcy: 2706 E Race Ave Stamps: 1110 E Antigo St West Memphis: 606 E Broadway St  

Georgia

Adel: 1014 S Hutchinson Ave Bainbridge: 1602 E Shotwell St Barnesville: 790 Veterans Pkwy Blakely: 800 Columbia Rd Brunswick: 5485 New Jesup Hwy Calhoun: 325 Curtis Pkwy Se Camilla: 500 Us Highway 19 S Cedartown: 550 N Main St Cleveland: 156 Wanderway Dr Cordele: 102 E 14th Ave Covington: 6179 Highway 278 Ne Dillard: 7230 Highway 441 N Hinesville: 767 Veterans Parkway Jasper: 970 E Church St Kingsland: 925 E King Ave Mcdonough: 1550 S. Zach Hinton Pkwy Quitman: 1315 W Screven St Ringgold: 1426 West 1st North Riverdale: 94 Upper Riverdale Rd Sw Rome: 1916 Redmond Cir Nw Royston: 411 Smith St Swainsboro: 501 S Main St Thomasville: 2730 E Pinetree Blvd Tunnel Hill: 3593 Chattanooga Rd Zebulon: 9215 Highway 19 N  

Illinois

Benton: 215 Bailey Ln  

Kentucky

Hopkinsville: 3129 Canton Pike Murray: 928 S 12th St Princeton: 300 Hwy 62 W Russell Springs: 2385 Lakeway Dr  

Louisiana

Baton Rouge: 10710 Greenwell Springs Road Bossier City: 5751 Shed Rd Carencro: 806 Veterans Dr Franklin: 1801 West Main Street Gonzales: 228 W Highway 30 Hammond: 125 Hwy 51 North Jonesboro: 310 E Main St Lafayette: 2490 W Congress St Monroe: 2350 Sterlington Rd Natchitoches: 400 Dixie Plz Pineville: 4628 Highway 28 E Shreveport: 5907 Old Mooringsport Road St. Martinville: 1114 South Main Street Westlake: 1514 Sampson Street  

Missouri 

Cape Girardeau: 121a South Sprigg Street Poplar Bluff: 441 Highway 53  

Mississippi

Aberdeen: 107 N Meridian St Brookhaven: 218 S Whitworth Ave Byram: 7261 S Siwell Rd Cleveland: 306 E Sunflower Rd Coldwater: 520 Central Ave Columbia: Hwy 13 Northgate S/C Columbus: 304 5th St S Columbus: 201 G Alabama St Florence: 2932 Highway 49 S Forest: 237 Woodland Dr Gautier: 1693 Highway 90 Greenville: 7616 Highway 80 Greenville: 1600 S Colorado St Greenwood: 813 W Park Ave Hattiesburg: 1000 Broadway Dr Holly Springs: 148 W Van Dorn Ave Horn Lake: 3031 Goodman Rd W Jackson: 225 Meadowbrook Rd Jackson: 540 Raymond Rd Leland: 302 North Main St. Magee: 1700 Simpson Hwy Meridian: 626 22nd Ave S Ocean Springs: 3176 Bienville Blvd Pascagoula: 2511 Ingalls Ave Pearl: 235 George Wallace Dr Philadelphia: 714 Pecan Ave Terry: 422 W Cunningham Ave Tupelo: 809 Varsity Dr Tupelo: 1776 McCullough Blvd West Point: 26591 E Main St Yazoo City: 1200 Jerry Clower Blvd  

North Carolina

Dunn: 988 Erwin Rd. Marion: 1155 N Main St Spruce Pine: 11931 S 226 Hwy  

Oklahoma

Wagoner: 700 E Cherokee St  

South Carolina

Anderson: 122 E Shocky Ferry Rd Chester: 109 Cestrain Sq Clinton: 105 B Jacobs Hwy Hodges: 4905 Emerson St Iva: 9710 Highway 81 S Ladson: 119 College Park Rd Landrum: 213 W Rutherford St Liberty: 315 W Front St North Augusta: 401 W Martintown Rd Orangeburg: 1180 Five Chop Rd Pickens: 310 Hampton Ave  

Tennessee

Brownsville: 337 E Main St Clarksville: 390 Highway 149 Collierville: 450 Hwy 72 West Dayton: 260 16th Ave Decherd: 1755 Decherd Blvd Dyersburg: 805 Pennell Ln Gallatin: 420 W Main St Hartsville: 230 Broadway Jackson: 1688 S Highland Ave Jasper: 3600 Main St Lebanon: 230 E Gay St McMinnville: 912 N Chancery St Medina: 211 Three Oaks Drive Memphis: 4280 Getwell Rd Memphis: 5016 Old Summer Rd Mt. Pleasant: 700 North Main Street Murfreesboro: 1664 Middle Tennessee Blvd Newport: 122 Five Rivers Plaza Way Paris: 850 Volunteer Dr Portland: 114 W Knight St Pulaski: 1670 W College St Selmer: 399 Mulberry Ave Woodbury: 1130 S Mccrary St  

Texas