Fred’s Inc. files for bankruptcy, closing retail stores

MEMPHIS, Tenn. (AP) – Discount retail and pharmacy chain Fred’s Inc. is filing for bankruptcy and closing its stores over the next two months.
The Memphis, Tennessee-based company said in a statement on Monday that it has filed for chapter 11 bankruptcy and has begun liquidation sales at all of its retail locations.
The company said that it expects to continue fulfilling prescriptions at most of its pharmacy locations, while pursuing the sale of its pharmacies.
Fred’s has filed a motion with U.S. Bankruptcy Court seeking up to $35 million for a financing agreement with certain lenders. Chief Executive Officer Joe Anto said that despite the company’s best efforts, “we were not able to avoid this outcome.”
Fred’s started in 1947. Fred’s had said earlier this year that it was closing more than 280 underperforming stores in 13 states.