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Fred’s to Close 104 Underperforming Stores in the Southeast

Globe NewsWire — Fred's, Inc.

MEMPHIS, Tenn., May 16, 2019 (GLOBE NEWSWIRE) -- Fred’s, Inc. (NASDAQ: FRED) today announced it will begin to close an additional 104 underperforming stores as part of an ongoing effort to rationalize its store footprint.  

Fred’s decision to close additional underperforming stores follows a continued 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 104 stores designated for closure will begin today while the Company’s other stores will remain open. 

Joseph Anto, Fred’s Chief Executive Officer, stated, “These additional store closures are a difficult, but necessary step in the continued restructuring of Fred’s.”

Fred’s intends to close all 104 impacted stores by the end of June 2019. Fred’s has continued its partnership with Malfitano Advisors, LLC and SB360 Capital Partners to help manage the process and ensure a seamless experience for customers. 

A list of impacted stores may be found at the end of this release.

Forbearance Agreement
Fred’s also announced today that it has entered into a forbearance agreement and amendment with its lenders under the Company’s revolving credit facility, as described in more detail in a Form 8-K filed with the Securities and Exchange Commission.  

About Fred’s Inc.
Since 1947, Fred’s, Inc. has been an integral part of the communities it serves throughout the southeastern United States. Fred’s mission is to make it easy AND exciting to save money. Its unique discount value store 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.

Forward Looking Statement
Comments in this news release that are not historical facts are forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. A reader can identify forward-looking statements because they are not limited to historical facts or they use such words as “outlook,” “guidance,” “may,” “should,” “could,” “believe,” “anticipate,” “project,” “plan,” “expect,” “estimate,” “objective,” “forecast,” “goal,” “intend,” “committed,” “continue,” or “will likely result” and similar expressions that concern the Company’s strategy, plans, intentions or beliefs about future occurrences or results. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties. Forward-looking statements include, but are not limited to, statements about future financial and operating results, the Company’s plans, objectives, business outlook, priorities, expectations and intentions, expectations for sales growth, comparable sales, earnings and performance, shareholder value, capital expenditures, cash flows, demand for products, share repurchases, strategic initiatives, including those relating to store closures and acquisitions and dispositions by the Company and the expected impact of such transactions on our strategic and operational plans and financial results, and any statement of an assumption underlying any of the foregoing and other statements that are not historical facts. Although we believe that the expectations, opinions, projections and comments reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and we can give no assurance that such statements will prove to be correct. A wide variety of potential risks, uncertainties and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to risks and uncertainties associated with: (i) the competitive nature of the industries in which we operate; (ii) our turnaround plan and the implementation of our strategic initiatives, and their impact on our sales, costs and operations; (iii) our store closures and the related sales of inventory and real estate issues; (iv) our divestitures; (v) utilizing our existing and new stores and the extent of our pharmacy department presence in new and existing stores; (vi) conditions affecting the retail sector as a whole; (vii) our reliance on a single supplier of pharmaceutical products; (viii) our pharmaceutical drug pricing; (ix) reimbursement rates and the terms of our agreements with pharmacy benefit management companies; (x) consolidation in the healthcare industry; (xi) our private brands; (xii) the seasonality of our business and the impact of adverse weather conditions; (xiii) operational, supply chain and distribution difficulties; (xiv) merchandise supply and pricing; (xv) consumer demand and product mix; (xvi) delayed openings and operating new stores and distribution facilities; (xvii) our employees; (xviii) risks relating to payment processing; (xix) our computer systems, and the processes supported by our information technology infrastructure; (xx) our ability to protect the personal information of our customers and employees; (xxi) cyber-attacks; (xxii) changes in governmental regulations; (xxiii) the outcome of legal proceedings, including claims of product liability; (xxiv) insurance costs; (xxv) tax assessments and unclaimed property audits; (xxvi) current economic conditions; (xxvii) our indebtedness and our ability to satisfy our debt obligations and obtain continued forbearance or waivers for any defaults; (xxviii) the terms of our existing and future indebtedness, including the covenants set forth in the documents governing such indebtedness; (xxix) any acquisitions we may pursue and the ability to effectively integrate businesses that we acquire; (xxx) our ability to remediate the material weaknesses in our internal controls over financial reporting and otherwise maintain effective internal controls over financial reporting; (xxxi) our largest stockholder holding a significant percentage of our outstanding equity; (xxxii) our ability to pay dividends and/or repurchase shares of our Class A voting common stock; (xxxiii) our ability to attract and retain talented executives; (xxxiv) any strategic alternatives that we decide to pursue, if any; (xxxv) our ability to continue as a going concern; and (xxxvi) the factors listed under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and any subsequent quarterly filings on Form 10-Q filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date made. The Company undertakes no obligation to release revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required to be reported under the rules and regulations of the Securities and Exchange Commission.

Contacts
Fred’s Inc:
Jen Ehlers
817-369-5772
jen.ehlers@fredsinc.com 

LIST OF STORE LOCATIONS TO BE CLOSED

ADDRESSCITYSTATEZIP
802 MAIN ST NEHANCEVILLEAL35077
2146 S OATES STDOTHANAL36301
105 MEMORIAL PARKWAY WESTALICEVILLEAL35442
802 FORREST AVEEAST BREWTONAL36426
17870 BALDWIN FARMS PLROBERTSDALEAL36567
1734 KOWALIGA RDECLECTICAL36024
35360 US HIGHWAY 231ASHVILLEAL35953
715 E MAIN STPRATTVILLEAL36067
8515 DOLLARWAY RDWHITE HALLAR71602
57 S BROADVIEW STGREENBRIERAR72058
6027 HIGHWAY 67HASKELLAR72015
609 EAST MAIN STREETMELBOURNEAR72556
15700 ARCH STLITTLE ROCKAR72206
110 N MAIN STMALVERNAR72104
1002 HIGHWAY 65 NMARSHALLAR72650
2695 STATE HIGHWAY 77 SMARIONAR72364
4212 E JOHNSON AVEJONESBOROAR72401
406 W MAIN STMAGNOLIAAR71753
406 HIGHWAY 425 SMONTICELLOAR71655
428 S JAMES STJACKSONVILLEAR72076
1701 COMMERCE RDPINE BLUFFAR71601
652 HIGHWAY 365MAYFLOWERAR72106
1302 HIGHWAY 64 EAUGUSTAAR72006
198 N CURTIS AVEPEA RIDGEAR72751
6522 CAROLINE STMILTONFL32570
1535 OHIO AVE SLIVE OAKFL32064
1435 S ORANGE AVEGREEN CV SPGSFL32043
1442 TIFT AVE NTIFTONGA31794
15 COLBERT BUSINESS PKWY WCOLBERTGA30628
813 BOWENS MILL RD SEDOUGLASGA31533
2601 S MAIN STMOULTRIEGA31768
118 ROBERT B LEE DRIVELEESBURGGA31763
3233 MARTHA BERRY HWY NWROMEGA30165
650 W CHERRY STJESUPGA31545
875 S MAIN STBAXLEYGA31513
425 SIGMAN RD NWCONYERSGA30012
1090 HIGHWAY 19 NTHOMASTONGA30286
1001 N SLAPPEY BLVDALBANYGA31701
4401 BEMISS ROADVALDOSTAGA31605
122 HILLCREST PKWYDUBLINGA31021
224 E. 4TH STREETOCILLAGA31774
6109 HOUSTON RDMACONGA31216
1021 HWY 45 NORTHEL DORADOIL62930
6 N 4TH STBREESEIL62230
1181 MAIN STMUNFORDVILLEKY42765
1117 LINCOLN PARK RDSPRINGFIELDKY40069
1701 N 18TH STMONROELA71201
899 N HIGHWAY 171MOSS BLUFFLA70611
2615 N 7TH STWEST MONROELA71291
2017 E MADISON AVEBASTROPLA71220
7616 HIGHWAY 80RUSTONLA71270
306 MOREAU STMARKSVILLELA71351
1882 AIRLINE DRBOSSIER CITYLA71112
207 WASHINGTON STWEST MONROELA71292
4828 SHREVEPORT HWYTIOGALA71260
603 E WASHINGTON STHAYTIMO63851
905 HIGHWAY 278 EAMORYMS38821
605 S JACKSON STSTARKVILLEMS39759
964 BROOKWAY BLVDBROOKHAVENMS39601
1930 UNIVERSITY AVEOXFORDMS38655
6 E COMMERCE STHERNANDOMS38632
2040 E SHILOH RDCORINTHMS38834
5760 HIGHWAY 80 EPEARLMS39208
5266 OLD HIGHWAY 11HATTIESBURGMS39402
12201 HIGHWAY 57VANCLEAVEMS39565
1317 E MAIN STTUPELOMS38804
25096 HIGHWAY 51CRYSTAL SPRINGSMS39059
1898 SPILLWAY RDBRANDONMS39047
401 E LEE STSARDISMS38666
102 NORFLEET DRSENATOBIAMS38668
7833 HWY 613MOSS POINTMS39563
200 CLINTON BLVDCLINTONMS39056
140 TRADE CENTER LNHAZLEHURSTMS39083
8912 NORTHWEST DRSOUTHAVENMS38671
150 PARK LANE DRRUTHERFORDTONNC28139
2350 SPRINGS RD NEHICKORYNC28601
200 SPARTANBURG HWYLYMANSC29365
908 ANDERSON STPIEDMONTSC29673
2404 WEST BLVDCHESTERFIELDSC29709
618 SUMTER HWYBISHOPVILLESC29010
106 JIMMY MARTIN CIRGASTONSC29053
1521 JEFFERSON DAVIS HWYCAMDENSC29020
1827 WILSON RDNEWBERRYSC29108
209 BROAD STSUMTERSC29150
505 LAURENS RDWOODRUFFSC29388
1405 S HOME STUNION CITYTN38261
6064 STAGE RDBARTLETTTN38134
1109 SCOTTSVILLE RDLAFAYETTETN37083
733 LAWRENCE STETOWAHTN37331
2549 N CENTRAL AVEHUMBOLDTTN38343
159 W TURN TABLE RDSPARTATN38583
1103 FLORENCE RDSAVANNAHTN38372
1797 HWY 100 EASTCENTERVILLETN37033
425 W 7TH STCOLUMBIATN38401
535 HIGH STHUNTINGDONTN38344
522 S MAIN STSWEETWATERTN37874
4589 QUINCE RDMEMPHISTN38117
5028 S 1ST STMILANTN38358
7143 WINCHESTER ROADMEMPHISTN38125
6500 QUINCE ROADMEMPHISTN38119
618 N MAIN STJACKSBOROTX76458
801 TURKEY CREEK TRLBRIDGEPORTTX76426
1000 W MAIN STHALLSVILLETX75650
605 E US HIGHWAY 80WHITE OAKTX75693