Fred's

Fred's was an American discount retail chain headquartered in Memphis, Tennessee, with stores concentrated across the southeastern United States. Its business combined a low-price general-merchandise format with pharmacy operations, allowing customers in many smaller towns to buy prescription medicines, over-the-counter health products, groceries, household necessities, seasonal goods, apparel, hardware, and other everyday merchandise in one location. The company generally targeted communities with populations of approximately 15,000 or fewer and competed with Dollar General, Family Dollar, Dollar Tree, independent variety stores, and local pharmacies. The business began in 1947 when brothers Paul, Victor, and Charles Baddour opened a dry-goods store called Good Luck in Coldwater, Mississippi. Paul later incorporated the operation as Baddour, Inc. As the chain expanded, stores adopted the Fred's Dollar Stores name in honor of Fred Baddour, Paul’s older brother. Corporate headquarters moved to Memphis in 1953, and the company developed a regional network supported by distribution facilities in Memphis and Dublin, Georgia. Fred's retail model emphasized value, convenience, and a broad assortment rather than a highly specialized product range. Many locations combined dollar-priced merchandise with pharmacy services. The company also operated smaller related formats, including Getwell Drug & Dollar, which focused on prescription and over-the-counter medicines alongside low-priced general merchandise, and Yazoo Trading Company, which sold hardware, automotive, pet, animal, and basic home-project supplies. The chain encountered increasing pressure from larger national discounters, changing consumer habits, rising operating costs, and uneven store performance. In 2008 it announced the closure of more than 50 underperforming stores, citing rising fuel costs and broader economic difficulties. A proposed 2016 agreement to acquire 865 Rite Aid stores represented a major attempted expansion, but the transaction was rendered void after Walgreens Boots Alliance changed its approach to the Rite Aid merger. Fred's received compensation for expenses related to the terminated arrangement, but the company did not obtain the planned stores. Fred's decline accelerated in 2019. The company announced successive waves of store liquidations and closures as sales weakened and leases expired. Its store base fell from 568 locations reported in early February 2019 to a planned 80 retail stores and 166 pharmacies after the July closure announcement. On September 9, 2019, Fred's announced that it would seek liquidation under Chapter 11 of the United States Bankruptcy Code. All remaining stores were scheduled to close by October 30, 2019, and the company liquidated merchandise and fixtures. Fred's was delisted from NASDAQ on September 18, 2019, and subsequently traded on the OTC Markets during the wind-down. The chain ultimately ceased operations and is now defunct. Beyond retail operations, Fred's supported community fundraising and charitable programs. These included campaigns benefiting the American Cancer Society, Children's Miracle Network Hospitals, local emergency-services programs through its Hero Hats initiative, Memphis Zoo conservation and animal-care activities through Panda Pals, and United Way fundraising. These programs reflected the company’s regional identity and its reliance on stores as community-oriented outlets.

Fred's originated in 1947 in Coldwater, Mississippi, where brothers Paul, Victor, and Charles Baddour opened a dry-goods store named Good Luck. The business was later incorporated as Baddour, Inc. During its regional expansion, Paul Baddour began using the Fred's Dollar Stores name in honor of his older brother, Fred. The company moved its headquarters to Memphis, Tennessee, in 1953 and eventually built a network across 15 southeastern states. The company’s format was designed for smaller communities that were often underserved by large-format retailers. Fred's stores sold a mixture of low-priced general merchandise, groceries, household items, seasonal goods, apparel, and health products. Many locations also included pharmacies, making the chain a hybrid of a discount variety store and a community drugstore. By June 2019, the company operated 396 locations, including 155 pharmacies, although this footprint was rapidly shrinking. Fred's operated distribution centers in Memphis and Dublin, Georgia. It also owned and operated two smaller concepts. Getwell Drug & Dollar combined pharmacy services, over-the-counter medicine, individualized patient care, and more than 1,700 one-dollar items. Yazoo Trading Company operated five stores in Alabama, Tennessee, and Georgia and focused on hardware, automotive products, pet and animal supplies, and basic home-improvement needs. The chain competed against Dollar General, Family Dollar, Dollar Tree, independent stores, and local pharmacies. Its regional concentration and community orientation were advantages in smaller markets, but the company faced persistent competitive and financial pressure. In 2008, Fred's closed more than 50 underperforming stores, attributing the decision to rising fuel costs and difficult economic conditions. In December 2016, Fred's announced an agreement to acquire 865 Rite Aid stores in connection with the proposed Walgreens Boots Alliance–Rite Aid merger. The planned transaction would have more than doubled Fred's store count and substantially changed its scale. The deal was not completed. In June 2017, Walgreens Boots Alliance abandoned the structure that would have transferred those stores to Fred's and instead pursued the purchase of approximately half of Rite Aid’s locations. Fred's received $25 million to compensate it for expenses associated with the terminated transaction. Leadership also changed during this period. Chief executive Jerry A. Shore retired in February 2017 and was succeeded by Michael Bloom, formerly the chief executive of Family Dollar. The attempted expansion did not reverse Fred's underlying difficulties. By early 2019, declining sales and expiring leases led to a series of liquidation announcements. Four major waves announced between April and July affected 159, 104, 49, and 129 stores respectively. The planned reduction took the company from 568 locations reported on February 2, 2019, to a much smaller remaining network. Rather than continue as a greatly reduced retailer, Fred's announced on September 9, 2019, that it would seek liquidation under Chapter 11. Merchandise and store fixtures were liquidated, and all remaining locations were required to cease operations by October 30. The company was removed from NASDAQ on September 18 and moved to OTC Markets during the wind-down. Fred's subsequently ceased retail operations and became defunct. Fred's also maintained a visible community-giving presence. Its charitable activities included employee support for American Cancer Society events, customer fundraising for Children's Miracle Network Hospitals, the Hero Hats program for local emergency-services organizations, Panda Pals fundraising for the Memphis Zoo, and United Way campaigns. These initiatives used store-level participation and customer donations to support national and local causes.

• 2019

  Liquidation and closure

  [1]Fred'sen.wikipedia.org

  Fred's announces Chapter 11 liquidation, closes its remaining stores, and exits retail operations.

• 2017

  Rite Aid transaction cancelled

  [1]Fred'sen.wikipedia.org

  The planned store acquisition is nullified after Walgreens Boots Alliance changes its Rite Aid transaction structure.

• 2016

  Rite Aid acquisition announced

  [1]Fred'sen.wikipedia.org

  Fred's announces a proposed acquisition of 865 Rite Aid stores for approximately $950 million.

• 2008

  Large-scale store closure program

  [1]Fred'sen.wikipedia.org

  The company decides to close more than 50 underperforming stores in response to operating and economic pressures.

• 1953

  Headquarters moves to Memphis

  [1]Fred'sen.wikipedia.org

  Fred's moves its corporate headquarters to Memphis, Tennessee, as the business expands across the Southeast.

• 1947

  First store opens in Mississippi

  [1]Fred'sen.wikipedia.org

  Paul, Victor, and Charles Baddour open the Good Luck dry-goods store in Coldwater, Mississippi.

Regional value retailer combining discount general merchandise with pharmacy services, particularly in smaller southeastern U.S. communities.

• Pharmacy

  Fred's pharmacies

  Pharmacy departments were a central part of Fred's later operating model. They provided prescription medicines, over-the-counter health products, and community-oriented pharmacy services. In June 2019, 155 of the company’s 396 reported locations were pharmacies.

• Discount retail · 1947

  Discount general merchandise

  Fred's stores carried a broad, value-oriented assortment including groceries, household necessities, seasonal products, apparel, health and beauty items, and other everyday merchandise. The format was particularly aimed at smaller southeastern communities.

• Pharmacy and dollar retail

  Getwell Drug & Dollar

  Getwell Drug & Dollar was a smaller Fred's-owned concept combining pharmacy services, over-the-counter medication, individualized patient care, and a large selection of dollar-priced merchandise.

• Hardware and specialty retail

  Yazoo Trading Company

  Yazoo Trading Company operated a small group of stores offering hardware, automotive supplies, pet and animal products, and basic materials for household projects.

• 2013Children's Miracle Network Hospitals Miracle Balloon campaign

  United States

  Customers could purchase paper Miracle Balloons in Fred's stores, with proceeds directed to Children's Miracle Network Hospitals in the communities where the donations were made.

  Outcome. The 2013 campaign raised $746,286, reported as a 16.9 percent increase over the 2012 campaign.

  Source
• 2004American Cancer Society support

  United States

  Fred's employees supported the American Cancer Society through participation in Making Strides events and related fundraising.

  Outcome. The Fred's team had raised more than $187,404 since becoming involved in the annual walk.

  Source
• 2003Panda Pals

  Fred's stores within approximately 200 miles of the Memphis Zoo

  Panda Pals invited customers to make donations through participating Fred's stores to support animal care, conservation, and research at the Memphis Zoo.

  Outcome. The program had contributed more than $750,000 to the zoo since its launch.

  Source
• 1999United Way fundraising

  United States

  Fred's employees participated in fundraising for United Way of America through company and store-level activities.

  Outcome. The company reported more than $500,000 in employee donations since 2005.

  Source
• Hero Hats

  United States

  The annual Hero Hats fundraiser sold commemorative items and directed proceeds to local emergency-services programs as a memorial to victims of the September 11 attacks.

  Source

• 2019

  Implement successive store liquidation wavesStrategy

  Background

  Deteriorating sales, lease expirations, and continuing operating pressure made a broad reduction in the store base necessary.

  Action taken

  Fred's announced closures affecting 159 stores in April, 104 in May, 49 in June, and 129 in July.

  Aftermath

  The company planned to reduce its footprint from 568 locations in early February to approximately 80 retail stores and 166 pharmacies.

  Source

• 2019

  Seek Chapter 11 liquidationOther

  Background

  After extensive closures and continued deterioration, Fred's determined that remaining operations could not be sustained.

  Action taken

  On September 9, Fred's announced a Chapter 11 liquidation process, including the sale of remaining merchandise and fixtures.

  Aftermath

  All remaining stores were required to close by October 30, 2019. The company was delisted from NASDAQ and ultimately ceased operations.

  Source

• 2016

  Pursue acquisition of 865 Rite Aid storesM&A

  Background

  The proposed Walgreens Boots Alliance and Rite Aid merger created an opportunity for Fred's to acquire a large portfolio of Rite Aid locations.

  Action taken

  Fred's agreed to acquire 865 stores for approximately $950 million, subject to completion of the broader transaction.

  Aftermath

  Walgreens Boots Alliance changed its transaction plan in 2017, ending the proposed transfer. Fred's received $25 million for expenses related to the cancelled deal.

  Proposed acquisition price. (2016 proposed transaction)

  Source

• 2008

  Close underperforming storesStrategy

  Background

  Rising fuel costs and broader economic difficulties contributed to weak performance at a substantial number of locations.

  Action taken

  Fred's decided to close more than 50 underperforming stores.

  Aftermath

  The closures reduced the chain’s presence in several states but did not resolve its longer-term competitive pressures.

  Source

1. 1Fred'sen.wikipedia.org