Fred's Files For Bankruptcy; Stock Plunges - Quick Facts

(RTTNews) - Fred's Inc. (FRED) said Monday that it has filed for voluntary relief under chapter 11 of the Bankruptcy in the U.S.

The company noted that it has also filed a motion seeking interim and final approval of the U.S. Bankruptcy Court to enter into a proposed debtor-in-possession financing agreement with certain of the Company's existing lenders, which would provide for up to $35 million in new funding.

The company has commenced liquidation sales at all retail locations, which are expected to close over the next 60 days.

The company expects to continue fulfilling pharmacy prescriptions at most of its pharmacy locations, while it continues to pursue the sale of its pharmacies as part of the court supervised proceedings.

In the pre-Market trade, FRED is currently trading at $0.15, down $0.0875 or 36.84%.