Discount retailer Fred’s Inc. has hired consulting firm BRG as part of a deal reached with lenders and it is exploring options including bankruptcy, WSJ Pro Bankruptcy reported. The likelihood of bankruptcy, however, remains low because the company has enough cash to pay off landlords after closing stores. Fred’s said on Thursday that it hired an unnamed turnaround adviser as part of a forbearance agreement reached with its lenders Regions Bank and Bank of America Corp. after defaulting on its loans. Last month, the company hired turnaround advisers PJ Solomon and Malfitano Partners and liquidation firm SB360 Capital Partners. The Memphis, Tenn.-based retailer said on Thursday that it would close 104 more underperforming stores, a month after saying it would shut 159 stores. With the latest round of closures, Fred’s has fewer than 300 remaining stores across the Southeast.
