The company opted for the closures after a complete
evaluation of its store portfolio. After looking at factors such as store
performance and the timing of lease expirations, the retailer decided to close
underperforming locations.
Fred’s is also pursuing the sale of its remaining pharmacy assets as part of its plan to monetize non-core assets to generate shareholder value. Last year, the company sold the patient prescription files and inventory of 179 Fred’s stores to Walgreens Boots Alliance (NYSE: WBA).
Last week, Fred’s reported its fourth quarter 2018 results, in which net sales fell 17.2% and comparable store sales fell 9.7%. Net loss from continuing operations was $67.2 million, or $1.86 per share.
Fred’s shares have tumbled 74% so far this year.