MEMPHIS — Fred’s Inc. announced earlier this month that it will begin to close underperforming and unprofitable stores.

The company has retained PJ Solomon to advise it in connection with a review of strategic alternatives to maximize value for all shareholders. The review will include a thorough evaluation of the company’s current operating plan, as well as all other potential alternatives to maximize value.

The company said it does not intend to discuss or disclose further developments related to its review unless and until the company’s board of directors has approved a specific action or otherwise determined that further disclosure is appropriate, or if disclosure is required by applicable law.

Fred’s decision to close underperforming stores follows a comprehensive evaluation of the company’s store portfolio, including historical and recent store performance and the timing of lease expirations. Liquidation sales at the 159 stores designated for closure began earlier this month, while the company’s 398 other stores will remain open.

“After a careful review, we have made the decision to rationalize our footprint by closing underperforming stores, with a particular focus on locations with shorter-duration leases,” said Joseph Anto, Fred’s chief executive officer. “We will make every effort to transition impacted associates to other stores where possible.”