Fred's
| Company type | Public |
|---|---|
| Industry | Retail |
| Founded | 1947 |
| Founder | Paul Baddour, Victor Baddour, Charles Baddour |
| Defunct | September 9, 2019 |
| Fate | Filed for Chapter 11 bankruptcy and liquidated |
| Headquarters | Memphis, Tennessee , United States |
Area served | Southeastern United States |
Key people | Michael Bloom (CEO from 2017) |
| Products | Discount general merchandise, pharmacy services |
FRED'S INC. (presented in all caps) was a retail enterprise based in Memphis, Tennessee, managing 396 outlets across 15 states in the southeastern United States as of June 2019. Among these locations, 155 functioned as pharmacies, while the remainder operated as discount general merchandise stores. In July 2019, Fred's revealed intentions to shut down 129 stores, scaling back to 80 retail outlets and 166 pharmacy locations, following earlier shutdowns in April and June.
On September 9, 2019, Fred's initiated a liquidation process under Chapter 11 of the US Bankruptcy Code, announcing the closure of all its remaining stores along with the sale of inventory and fixtures.
History
The enterprise began in 1947 when brothers Paul, Victor, and Charles Baddour launched a dry-goods shop called Good Luck in Coldwater, Mississippi. Subsequently, Paul incorporated the business as Baddour, Inc. As the chain grew throughout the Southeast, it was rebranded as Fred's Dollar Stores in honor of Paul's elder brother, Fred. The corporate headquarters were relocated to Memphis, Tennessee in 1953.
Fred's main competitors included national discount chains like Dollar General, Family Dollar, and Dollar Tree, primarily targeting communities with populations below 15,000. The company operated two distribution hubs located in Memphis and Dublin, Georgia.
In addition to its primary brand, Fred's owned two smaller chains: Getwell Drug & Dollar and Yazoo Trading Company. Getwell Drug & Dollar combined pharmacy services with over-the-counter products and patient care across Alabama, Tennessee, Georgia, and Mississippi, offering upwards of 1,700 items priced at one dollar. Yazoo Trading Company specialized in hardware, automotive, and pet supplies at five sites spanning Alabama, Tennessee, and Georgia.
Facing economic challenges such as rising fuel prices, Fred's shuttered more than 50 underperforming stores in 2008, which led to a reduced presence in states including North Carolina.
On December 21, 2016, Fred's announced a $950 million deal to acquire 865 stores from the Walgreens Boots Alliance/Rite Aid merger, which would have more than doubled its store count. However, after Walgreens revised its acquisition plan in June 2017 by purchasing only half of Rite Aid’s outlets, Fred's acquisition was canceled. Fred's received $25 million as reimbursement for costs incurred due to the terminated agreement.
In February 2017, CEO Jerry A. Shore retired and was succeeded by Michael Bloom, formerly CEO of Family Dollar. This leadership change was part of a strategic effort to enhance Fred's financial results following difficulties experienced during Bloom’s tenure at Family Dollar.
Decline
By early 2019, Fred's financial condition had worsened significantly, leading to plans to reduce its store count drastically from 568 locations (as of February 2) down to just 80 — an over 85% decrease — through a series of four closure phases:
- April 11: Closure of 159 stores by the end of May due to declining sales and lease expirations;
- May 16: Shutdown of 104 stores by the end of June;
- June 21: Closure of 49 stores by summer’s end;
- July 12: Additional closure of 129 stores.
Rather than continuing operations on a reduced scale, Fred's filed for Chapter 11 bankruptcy on September 9, 2019 and ceased all business activities. The company was removed from NASDAQ on September 18 and transitioned to OTC Markets. All remaining stores were required to close by October 30, 2019.
Philanthropy
Fred's has actively participated in corporate giving by supporting a variety of prominent national nonprofit organizations:
- American Cancer Society – Since 2004, employees have dedicated both time and financial resources through annual "Making Strides" events, collectively raising more than $187,000.
- Children's Miracle Network Hospitals – Through in-store fundraising initiatives, Fred's has generated upwards of $5.5 million, with a peak contribution of $746,286 achieved in 2013.
- "Hero Hats" – This yearly fundraiser commemorates the victims of September 11, directing all proceeds to support local emergency response teams.
- Panda Pals Program – Launched in 2003 to benefit the Memphis Zoo, this initiative has amassed over $750,000 in contributions.
- United Way of America – Employee-led fundraising campaigns dating back to 1999 have resulted in donations exceeding $500,000 since 2005.