MEMPHIS — Fred’s will begin its latest round of shuttering underperforming and unprofitable stores, the company announced. The company also 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.
The company said it does not intend to discuss or disclose further developments related to its review unless and until the board 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, among other factors. “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. Fred’s is also continuing to pursue the previously announced sale of its remaining pharmacy assets.