Fred’s closing 129 more stores
Future looks grim as 5 sites in Memphis area will shut down
Discount merchandise retailer Fred’s is closing another 129 stores as the company’s swift contraction continues, placing its survival in doubt.
The chain said Friday that it would have about 80 stores left after the latest in a series of store closures. The going-out-of-business sales began Friday. Stores closing in the Memphis area include locations at 1290 Lamar Ave., 11888 U.S. 70 in Arlington, 710 Church Road in Southaven, 2110 Goodman Road East in Southaven and 1038 U.S. 61 in Tunica.
More than 7,000 store closings are already in the works or completed so far in 2019 across the retail sector, according to Coresight Research.
Fred’s also said it would hold “inventory clearance sales across all stores in an effort to refocus its product mix, simplify its store portfolio and repay debt.”
Fred’s had 568 stores in 15 states in the southeastern U.S. as of Feb. 2, including 169 with full-service pharmacies, according to a court filing.
The fate of Fred’s has been shrouded in uncertainty since the company’s plans to profit from a mega-merger between pharmacy giants Walgreens Boots Alliance and Rite Aid collapsed in late June 2017 amid federal anti-trust concerns.
Fred’s, which was set to dramatically increase its store count as part of that deal, was instead left with no clear path to growth.
The retailer has slashed costs aggressively, cut jobs and sold assets in pursuit of a sustainable business model.
The company is working with liquidators Malfitano Advisors and SB360 Capital Partners in the store liquidation sales.
“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,” Fred’s CEO Joseph Anto said.
The retailer said it could reopen certain stores that are currently slated to close “under a new operating model, with an updated assortment.” Contributing: Kelly Tyko Follow USA TODAY reporter Nathan Bomey on Twitter @Nathanbomey.