US-based discount chain Fred’s has announced it will close an additional 104 underperforming stores by the end of June this year.
The decision follows the retailer’s continued evaluation of its store portfolio based on various factors, such as historical and recent store performances and the time of lease expiry.
The stores set to close are located in Alabama, Florida, Georgia, Illinois, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee and Texas.
The news follows Fred’s announcement, in April this year, that it would close 159 underperforming and unprofitable stores.
For the latest closures, the retailer has partnered with Malfitano Advisors and SB360 Capital Partners to manage the process and ensure a seamless experience for customers.
The company has already commenced liquidation sales at the 104 stores. It has also mentioned that the remaining outlets will remain open for business.
Fred’s CEO Joseph Anto said: “These additional store closures are a difficult, but necessary step in the continued restructuring of Fred’s.”
Fred’s, along with certain of its subsidiaries, has also signed a forbearance agreement and amendment with its lenders to commence the recently announced 159 store closures.
As part of the agreement, the retailer expects to receive a reduction in commitments from $210m to $150m and additional reductions to $125m, on 15 June 2019 and to $100m on 6 July.