Fred’s Inc is on a closure spree, as part of its restructuring plans.
In April, the company had announced that it would be closing 159 stores across the country. But now, the company has stated that it would be closing additional stores in 104 locations.
In all, the company will be closing 263 stores, which is almost half of its store count. With this closure, Fred will have around 300 stores left.
All non-performing stores will be closing soon. Fred’s CEO Joseph Anto has said that these stores are nearing lease expirations and will be shut down soon. We are closing underperforming stores with short duration leases as part of our restructuring plans, he says.
However, most of the closures are found in Southwest Georgia, while 27 locations are found in other parts of the country. Some of the locations are found in Alabama, Illinois, Louisiana, Georgia, Florida, Mississippi, North and South Carolina, Texas, Tennessee, and Missouri.
Discount chain Fred sells many food items and household cleaning items. However, its net sales have fallen 17.2 percent in the fourth quarter.
With this announcement, the company shares are down by 25 percent on Thursday, which is 45 cents per share. The shares have breached the $1 levels since May 6.
By the end of June, the closures will take place. Meanwhile, liquidations sales are to take place immediately, to help the company on its restructuring work.
SB360 Capital Partners is taking care of liquidation sales at various locations.
Aaron Miller, the Executive Vice President of SB360 says that high traffic is expected at these locations, similar to the 159 stores that were done previously.
Products like grocery, eggs, beverages, milk and household cleaning materials are replenished regularly at these stores. As products are fresh and discounts are offered every day, the strategy is most beneficial to customers, says Ziggy Schafer, another Executive Vice President.
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