Fred’s, Inc. is closing an additional 129 stores as part of an on-going effort to refocus its product mix, simplify its store portfolio and repay debt, company officials said.
Following the closures, Fred’s will have approximately 80 retail stores remaining, centered primarily around the company’s distribution center in Dublin, GA. The retailer said it may evaluate re-launching certain closed stores in the future under a new operating model, with an updated assortment.
The company expects the proceeds from the inventory clearance sales will be used to repay outstanding indebtedness under its revolving credit agreement.
“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,” said Joseph Anto, CEO of Fred’s.