Fred's Interim CEO says 'We continue to explore other strategic transactions'
Fred's Interim CEO and CFO, Joe Anto stated, "We are rapidly making progress on our two main goals of eliminating our debt balance and returning to significant profitability by Q4 of this year, but there is still much work to be done. We recently closed the sale of our specialty pharmacy business for approximately $40 million, and as of June 12th, our borrowings against our ABL were $135 million, down from $162 million at the end of Q1, with over $60 million in available liquidity. We expect our ABL balance to continue to decrease over the coming weeks, as we collect all remaining receivables associated with the specialty pharmacy business. We continue to explore other strategic transactions and expect to generate additional cash proceeds which should meaningfully reduce our debt balance. We have engaged PJ Solomon & Company to analyze the value of our retail pharmacy script portfolio and also engage with potential strategic buyers on this part of our business. That process is well underway and we will provide updates as appropriate. Additionally, we continue to aggressively reduce expenses in every part of the business, while executing on various initiatives to increase sales and gross margin." Heath Freeman, Chairman of the Board commented: "We remain confident in our abilities to reset our cost structure, bring in the right talent, allocate capital wisely, generate significant free cash flow and maximize value for all shareholders."