159 Fred’s Stores Shutting Down With Massive Clearance Sales

159 Fred’s Stores Shutting Down With Massive Clearance Sales
Memphis Fire Department truck at Fred's discount store in Memphis, Tenn., on Sept. 20, 2018 (Courtesy of Fred's)
Richard Szabo
4/13/2019
Updated:
4/13/2019

Everything is on sale at nearly 160 Fred’s stores, which are closing down on May 31.

The discount retail chain confirmed on April 11 that liquidation sales would begin at 159 of its stores across the nation and would continue until the end of the following month.

The announcement to the Nasdaq stock exchange came as Fred’s finished a comprehensive evaluation of the company’s store portfolio, including historical and recent store performance and the timing of lease expirations, among other factors.

The review led the chain to decide to close its under performing stores through liquidation sales, representing 28.5 percent of its total of 557 stores. The company’s remaining 398 stores will stay open.

“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. Most of these stores have near-term lease expirations and limited remaining lease obligations,” Fred’s Chief Executive Officer Joseph Anto said in a public statement. “Decisions that impact our associates in this way are difficult but the steps we are announcing are necessary. We will make every effort to transition impacted associates to other stores where possible.”

Sales at Fred’s stores fell 4.9 percent in the first nine months of 2018, compared to the same period in the previous year, according to USA Today. Shares in Fred’s also fell nearly 5.8 percent to $1.97 on the same day the announcement was made.

Fred’s has appointed asset disposition firms Malfitano Advisors and SB360 Capital Partners to manage the liquidation process and not interrupt the shopping experience for customers.

SB360 confirmed in addition to the clearance sale at the 159 closing stores, there would also be a “total inventory blowout” at 360 more locations.

“The store closing and total inventory blowout events will bring value on top of value,” SB360 Executive Vice President Ziggy Schaffer said in a public statement. “We'll be offering discounts off the lowest marked price on everything in these stores.”

SB360 Executive Vice President Aaron Miller predicts there will be large crowds at the stores that are closing down where discounts are expected to range between 5 and 20 percent off the ticketed price with some exclusions.

“When stores with a loyal shopper like Fred’s have a store closing or inventory blowout event, word spreads quickly. Shoppers line up and they’re filling their carts,” he said. “We encourage shoppers to take advantage of this opportunity while supplies last.”

Investment banking company PJ Solomon will stay on to advise Fred’s on possible alternatives to maximize value for shareholders in the chain.

“The review will include a thorough evaluation of the company’s current operating plan, as well as all other potential alternatives to maximize value,” the company said. “There can be no assurance that the strategic review will result in any specific action, or any assurance as to its outcome or timing.”

Fred’s previously announced it would sell its remaining pharmacy assets to Walgreens, including pharmacy patient prescription files and related pharmacy inventory from 179 Fred’s stores across 10 southeastern states. The transaction closed in the company’s December quarter.

Fred’s has been in business since 1947, and the company based in Memphis, Tennessee offers a wide range of value-priced everyday items that are promised to make it “easy and exciting to save money.”

At this stage there are no plans to close more Fred’s stores or to file for bankruptcy according to The Wall Street Journal.
The affected stores are listed below.

Alabama

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

Arkansas

Bryant: 3395 Highway 5 N. Cabot: 207 S. 2nd St. Conway: 245 Oak St. Conway: 1125 Morningside Drive 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 Road Mena: 1201 Highway 71 S. Mountain Home: 509 Highway 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 Place Searcy: 2706 E. Race Avenue Stamps: 1110 E. Antigo St. West Memphis: 606 E. Broadway St.

Georgia

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

Illinois

Benton: 215 Bailey Lane

Kentucky

Hopkinsville: 3129 Canton Pike Murray: 928 S. 12th St. Princeton: 300 Highway 62 W. Russell Springs: 2385 Lakeway Drive

Louisiana

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

Missouri

Cape Girardeau: 121a S. Sprigg St. Poplar Bluff: 441 Highway 53

Mississippi

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

North Carolina

Dunn: 988 Erwin Road Marion: 1155 N. Main St. Spruce Pine: 11931 S. 226 Highway

Oklahoma

Wagoner: 700 E. Cherokee St.

South Carolina

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

Tennessee

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

Texas

Gladewater: 601 Broadway Avenue Kilgore: 605 N. Henderson Blvd Lindale: 1601 S. Main St. Mc Gregor: 1000 S. Main St. Tyler: 1803 E. Gentry Parkway Whitehouse: 1123 State Highway 110 N.
Richard Szabo is an award-winning journalist with more than 12 years' experience in news writing at mainstream and niche media organizations. He has a specialty in business, tourism, hospitality, and healthcare reporting.
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