Discount retailer Fred’s Inc. has hired a financial adviser as it looks to downsize its store footprint and turn around its business, WSJ Pro Bankruptcy reported. The Memphis-based retailer is working with Malfitano Partners, an advisory firm run by turnaround veteran Joseph Malfitano. Malfitano recently worked as an adviser in Toys “R” Us Inc.’s bankruptcy. As recently as this week, Fred’s executives have met with liquidation firms to discuss closing underperforming stores. There are currently no plans to close a majority or all stores. The publicly traded retailer is exploring its options to turn around its business, which has seen net sales fall in recent years. A bankruptcy filing is currently not on the table, according to sources.
