Discount chain Fred's announced Thursday it is closing 104 underperforming stores as part of an “ongoing effort to rationalize its store footprint.”
The new round of closings comes five weeks after the Memphis-based company started "going out of business" liquidation sales at 159 stores and follows an evaluation of store performance and timing of lease expirations, Fred's said in a statement.
“These additional store closures are a difficult but necessary step in the continued restructuring of Fred’s,” Fred’s CEO Joseph Anto said in the statement.
The liquidation of the 104 stores starts Thursday with stores expected to close by the end of June. Mississippi, Arkansas, Georgia and Tennessee are losing the most locations.
Liquidation firm SB360 Capital Partners is managing the liquidation sales for Fred's.
“We’re expecting pretty significant traffic as these 104 stores get underway, just as we saw with the initial group of 159 stores,” Aaron Miller, an executive vice president with SB360, told USA TODAY.
Children's Place: Retailer to close up to 45 stores in 2019 and preparing for Gymboree relaunch
Store closings 2019: CVS, Payless and Victoria's Secret are just some of the brands closing stores
The stores from the first round are expected to close by the end of May, Miller said.
Ziggy Schaffer, an executive vice president with SB360, said stores will continue to replenish staples like milk, eggs, beverages and household cleaning supplies.
“It really makes it a one-stop destination,” Schaffer said. “The grocery aspect of being replenished every day with fresh products is very attractive, especially given the discounts offered off everyday low prices. It’s very beneficial for the customers.”
In April, Fred's said it had 557 stores in 13 states. After the 263 closures, representing 46% of the company, there will be 294 remaining locations.
Fred's isn't the only retailer shuttering locations.
Based on figures from global marketing research firm Coresight Research, bankruptcy filings and company earnings reports, more than 6,500 stores are slated to close in 2019.
Party City closings: Retailer closing 45 stores
CVS closing 46 stores: See the list of struggling locations that are going away
Follow Kelly Tyko on Twitter: @KellyTyko
Closing stores
The 104 stores are expected to close by the end of June.
Alabama
-
Aliceville: 105 Memorial Parkway West
-
Ashville: 35360 U.S. Highway 231
-
Dothan: 2146 S Oates St.
-
East Brewton: 802 Forrest Ave.
-
Eclectic: 1734 Kowaliga Road
-
Hanceville: 802 Main St. NE
-
Prattville: 715 E Main St.
-
Robertsdale: 17870 Baldwin Farms Place