[ad_1]
The Memphis-based retailer filed for Monday's Chapter 11 claim and said liquidation sales will take place in its stores in the next 60 days.
"Despite all the efforts of our team, we could not avoid this result," said CEO Joe Anto in a statement.
In bankruptcy court, the company will seek a financing agreement that would inject up to $ 35 million into new financing in the company. to ensure an "orderly liquidation of its operations".
Fred & # 39; s (FRED) sells a variety of items, such as food and household cleaning products. The stores are scattered in several US states, including Alabama, Georgia, Illinois, Florida and Texas.
Fred's has been reporting annual losses since 2015. She struggled to find a turnaround plan and had to go through several rounds of store closings.
He's still trying to get out of the pharmacy business. Walgreens (WBA) Last year, we purchased pharmacy patient prescription records and Fred's inventory. The company said it would continue to execute the prescriptions in the remaining pharmacies while trying to find a buyer.
Fred's opened his first store in 1947 in Mississippi. The company then expanded its footprint in the United States with the idea of becoming a value-based retailer and pharmacy. It sells both private labels and national brands.
Fred's is the last store in bankruptcy or to completely close its doors. Forever 21, Barney's, Charming Charlie, Payless Shoes and Gymboree all reported financial problems confirmed this year.
This year, retailers announced 8,000 store closures. According to a report by Coresight Research, this figure already exceeds the 5,864 closing announcements announced last year. The company expects that 12,000 stores will close by the end of the year.
[ad_2]
Source link