FRED Freds Inc

Fred’s, Inc. (NASDAQ: FRED) today announced it will close an additional 49 underperforming stores as part of an ongoing effort to optimize store footprint. Pharmacies will remain open at all locations listed below – customers can continue to fill their prescriptions, receive vaccinations, and purchase over the counter medications. Fred’s decision to close additional underperforming stores follows a continued evaluation of the Company's store portfolio, including historical and recent store performance and the timing of lease expirations, among other factors. 

Fred’s will continue its partnership with Malfitano Advisors, LLC and SB360 Capital Partners to help manage the process and ensure a seamless experience for customers. 

A list of the impacted stores may be found at the end of this release.  

About Fred’s Inc.Since 1947, Fred’s, Inc. has been an integral part of the communities it serves throughout the southeastern United States. Fred’s mission is to make it easy AND exciting to save money. Its unique discount value store format offers customers a full range of value-priced everyday items, along with terrific deals on closeout merchandise throughout the store. For more information about the Company, visit Fred’s website at www.fredsinc.com.

Forward Looking StatementComments in this news release that are not historical facts are forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. A reader can identify forward-looking statements because they are not limited to historical facts or they use such words as “outlook,” “guidance,” “may,” “should,” “could,” “believe,” “anticipate,” “project,” “plan,” “expect,” “estimate,” “objective,” “forecast,” “goal,” “intend,” “committed,” “continue,” or “will likely result” and similar expressions that concern the Company’s strategy, plans, intentions or beliefs about future occurrences or results. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties. Forward-looking statements include, but are not limited to, statements about future financial and operating results, the Company’s plans, objectives, business outlook, priorities, expectations and intentions, expectations for sales growth, comparable sales, earnings and performance, shareholder value, capital expenditures, cash flows, demand for products, share repurchases, strategic initiatives, including those relating to store closures and acquisitions and dispositions by the Company and the expected impact of such transactions on our strategic and operational plans and financial results, and any statement of an assumption underlying any of the foregoing and other statements that are not historical facts. Although we believe that the expectations, opinions, projections and comments reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and we can give no assurance that such statements will prove to be correct. A wide variety of potential risks, uncertainties and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to risks and uncertainties associated with: (i) the competitive nature of the industries in which we operate; (ii) our turnaround plan and the implementation of our strategic initiatives, and their impact on our sales, costs and operations; (iii) our store closures and the related sales of inventory and real estate issues; (iv) our divestitures; (v) utilizing our existing and new stores and the extent of our pharmacy department presence in new and existing stores; (vi) conditions affecting the retail sector as a whole; (vii) our reliance on a single supplier of pharmaceutical products; (viii) our pharmaceutical drug pricing; (ix) reimbursement rates and the terms of our agreements with pharmacy benefit management companies; (x) consolidation in the healthcare industry; (xi)  our private brands; (xii) the seasonality of our business and the impact of adverse weather conditions; (xiii) operational, supply chain and distribution difficulties; (xiv) merchandise supply and pricing; (xv) consumer demand and product mix; (xvi) delayed openings and operating new stores and distribution facilities; (xvii) our employees; (xviii) risks relating to payment processing; (xix) our computer systems, and the processes supported by our information technology infrastructure; (xx) our ability to protect the personal information of our customers and employees; (xxi) cyber-attacks; (xxii) changes in governmental regulations; (xxiii) the outcome of legal proceedings, including claims of product liability; (xxiv) insurance costs; (xxv) tax assessments and unclaimed property audits; (xxvi) current economic conditions;  (xxvii) our indebtedness and our ability to satisfy our debt obligations and obtain continued forbearance or waivers for any defaults; (xxviii) the terms of our existing and future indebtedness, including the covenants set forth in the documents governing such indebtedness; (xxix) any acquisitions we may pursue and the ability to effectively integrate businesses that we acquire; (xxx) our ability to remediate the material weaknesses in our internal controls over financial reporting and otherwise maintain effective internal controls over financial reporting; (xxxi) our largest stockholder holding a significant percentage of our outstanding equity; (xxxii) our ability to pay dividends and/or repurchase shares of our Class A voting common stock; (xxxiii) our ability to attract and retain talented executives; (xxxiv) any strategic alternatives that we decide to pursue, if any; (xxxv) our ability to continue as a going concern; and (xxxvi) the factors listed under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and any subsequent quarterly filings on Form 10-Q filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date made. The Company undertakes no obligation to release revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required to be reported under the rules and regulations of the Securities and Exchange Commission.

ContactsFred’s Inc: Jen Ehlers817-369-5772jen.ehlers@fredsinc.com

LIST OF FRONT STORE LOCATIONS TO BE CLOSED – PHARMACIES REMAIN OPEN

Store #	Location	Address	City	State	ZIP
2213	LOUISVILLE, GA	119 US 1 BY-PASS	LOUISVILLE	GA	30434
2128	LEXINGTON, GA	718 ATHENS RD	LEXINGTON	GA	30648
2780	ROLLING FORK, MS	901 US 61	ROLLING FORK	MS	39159
2572	SOPERTON, GA	4269 W MAIN ST	SOPERTON	GA	30457
2533	OKOLONA, MS	511 W MONROE AVENUE	OKOLONA	MS	38860
1305	CALHOUN CITY, MS	71 HIGHWAY 8 E	CALHOUN CITY	MS	38916
1385	CLARKSVILLE, AR	409 W MAIN ST	CLARKSVILLE	AR	72830
2243	MACON, MS	59 FRONTAGE RD	MACON	MS	39341
2748	RICHTON, MS	403 FRONT ST	RICHTON	MS	39476
1660	BRINKLEY, AR	1131 NORTH CHARLYNE	BRINKLEY	AR	72021
1165	BOLIVAR, TN	105 TENNESSEE ST	BOLIVAR	TN	38008
1907	HAMBURG, AR	700 N MAIN ST	HAMBURG	AR	71646
3070	TYLERTOWN, MS	3000 PLAZA DRIVE	TYLERTOWN	MS	39667
1935	FERRIDAY, LA	2094 EE WALLACE BLVD N	FERRIDAY	LA	71334
1320	CAMDEN, TN	195 HIGHWAY 641 N	CAMDEN	TN	38320
2430	NEWTON, MS	304 NORTHSIDE DR	NEWTON	MS	39345
3235	WIGGINS, MS	116 2ND STREET SOUTH	WIGGINS	MS	39577
2890	SPRINGHILL, LA	1190 S ARKANSAS ST.	SPRINGHILL	LA	71075
2460	NORTH CROSSETT, AR	1164 HIGHWAY 133 N	CROSSETT	AR	71635
2150	LORETTO, TN	534 N MILITARY ST	LORETTO	TN	38469
1095	BALD KNOB, AR	170 HIGHWAY 167 N	BALD KNOB	AR	72010
2083	CHEROKEE VILLAGE, AR	200 HOSPITAL DRIVE	CHEROKEE VILLAGE	AR	72529
2723	KERSHAW, SC	405 SOUTH HAMPTON STREET	KERSHAW	SC	29067
2727	KENTWOOD, LA	734 AVENUE G, HIGHWAY 38	KENTWOOD	LA	70444
2260	MORRILTON, AR	601 N ST JOSEPH	MORRILTON	AR	72110
2473	MANTACHIE, MS	67 WATSON DR	MANTACHIE	MS	38855
1525	EUNICE, LA	2200 W LAUREL AVE	EUNICE	LA	70535
1570	FAIRVIEW, TN	2415 FAIRVIEW BLVD	FAIRVIEW	TN	37062
1085	BEEBE, AR	901 W DEWITT HENRY DR	BEEBE	AR	72012
6015	MIDDLETON, TN (GD&D)	700 S. MAIN STREET	MIDDLETON	TN	38052
6021	SULLIGENT, AL (GD&D)	5705 HWY 278	SULLIGENT	AL	35586
2753	REFORM, AL	609 1ST AVE W	REFORM	AL	35481
1713	GEORGIANA, AL	685 HWY 106 WEST	GEORGIANA	AL	36033
1723	GREENFIELD, TN	1207 S MERIDIAN ST	GREENFIELD	TN	38230
1805	HEBER SPRINGS, AR	308 S 7TH ST	HEBER SPRINGS	AR	72543
2175	LEXINGTON, MS	301 YAZOO ST	LEXINGTON	MS	39095
3368	WOODVILLE, MS	211 U.S. HWY 61 SOUTH	WOODVILLE	MS	39669
3053	TAYLORSVILLE, MS	402 PINE ST	TAYLORSVILLE	MS	39168
1920	INDIANOLA, MS	210 HIGHWAY 82 W	INDIANOLA	MS	38751

2613	PELAHATCHIE, MS	404 SECOND STREET	PELAHATCHIE	MS	39145
1683	CHURCH POINT, LA	821 S MAIN ST	CHURCH POINT	LA	70525
1893	HOUSTON, MS	905 N PONTOTOC ST	HOUSTON	MS	38851
1760	HAYNESVILLE, LA	9270 HIGHWAY 79	HAYNESVILLE	LA	71038
1663	ALBANY, KY	800 N CROSS ST	ALBANY	KY	42602
2687	DEQUINCY, LA	702 WEST 4TH STREET	DEQUINCY	LA	70633
1060	ACKERMAN, MS	318 N ALFORD	ACKERMAN	MS	39735
1470	DURANT, MS	33674 HIGHWAY 12	DURANT	MS	39063
2925	SHERIDAN, AR	624 S ROCK ST	SHERIDAN	AR	72150
2697	MANSFIELD, LA	400 WASHINGTON AVE	MANSFIELD	LA	71052