Local Fred’s Discount Store to Close by the End of October

Lavonia’s largest discount retailer, Fred’s, is set to close its doors for good at the end of October.

Last month, the Memphis-based retailer filed for Chapter 11 bankruptcy and said liquidation sales would take place at all of its stores over the next 60 days, throwing over 7,000 employees nationwide out of work.

Fred’s initially operated 557 stores nationwide, 155 of which were pharmacies.

In July, Fred’s announced it would close 129 stores, but in September, Company officials announced it was seeking liquidation under Chapter 11 of the U.S. Bankruptcy Code and would close all remaining stores.

Chief Executive Officer Joe Anto told CNN Business that despite best efforts, the retailer was not able to avoid bankruptcy.

In bankruptcy court, the company will seek a financing agreement that would inject up to $35 million in fresh funding into the business to ensure an “orderly wind-down of its operations.”

According to the CNN report, Fred’s has been reporting yearly losses since 2015, and its efforts to find a turnaround plan failed.

Though not in its Lavonia location, Fred’s also operated pharmacies at some of its stores.

Walgreens bought some of Fred’s pharmacy patient prescription files and inventory last year.

On its Website, Fred’s said that it would continue to fill prescriptions at its remaining pharmacy locations while it tries to find a buyer.

Fred’s opened its first store in 1947 in Mississippi.