Fred’s, Inc. (NASDAQ: FRED) announced Thursday in a press release they will close 159 stores, including their Murfreesboro location at 1664 Middle Tennessee Blvd.
The store closures are the result of Fred’s retaining PJ Solomon to evaluate strategic alternatives to maximize value for all shareholders. The 159 stores to close are all deemed “underperforming” and “unprofitable.”
Fred’s decision to close underperforming stores follows a comprehensive 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 159 stores currently designated for closure are underway. The Company’s 398 other stores will remain open.
Joseph Anto, Fred’s Chief Executive Officer, stated: “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. 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.”
In addition to the Murfreesboro location, other Middle Tennessee locations to close are those in Clarksville, Gallatin, Mt. Pleasant and Lebanon.
Liquidation sales begin immediately and Fred’s intends to close all 159 impacted stores by the end of May 2019.
About Fred’s Inc.
Since 1947, Fred’s, Inc. has been an integral part of the communities it serves throughout the southeastern United States. Today, Fred’s operates 557 discount value stores and its mission is to make it easy AND exciting to save money. Its unique 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.