Lowenstein Sandler has been selected as counsel to the Committee of Unsecured Creditors in Chapter 11 proceedings for Fred’s, Inc., a discount general merchandise store operator. The company filed for Chapter 11 protection in early September, 2019 in the Bankruptcy Court for the District of Delaware, along with several affiliates; it reported $474.8 million in assets and $380.2 million in liabilities as of May 4.
Fred's had 568 stores in 15 states in the southeastern U.S. as of Feb. 2, including 169 with full-service pharmacies. The company plans to liquidate its assets through going-out-of-business sales over the next 60 days. According to the company’s latest 10-Q, funded debt at Fred’s appears to be principally comprised of a revolving credit agreement facility with Regions Bank and Bank of America, N.A.