Fred’s gets $22.53 million in stalking horse bids for real property

By Caroline Salls

Pittsburgh, Oct. 15 – Fred’s Inc. entered into stalking horse purchase agreement for its Dublin, Ga., distribution center and for a group of 56 properties, according to a notice filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Tucker Northwest, LLC has agreed to serve as the stalking horse bidder for the distribution center sale with a $13.03 million bid, and R.A. Wilson Enterprises, Inc. has agreed to serve as the stalking horse bidder for the 56 store properties with a $9.5 million bid.

Competing bids for some or all of Fred’s real estate assets are due by 4 p.m. ET on Oct. 21.

An auction will be held on Oct. 28, if necessary, and the sale hearing is scheduled for Oct. 30.

If Tucker is not the high bidder for the distribution center, Fred’s will pay it a $195,375 break-up fee. Meanwhile, R.A. Wilson would receive a $142,500 break-up fee and reimbursement of up to $50,000 of its sale-related expenses if it is not the high bidder for the store properties.

Fred’s is a Memphis, Tenn.-based operator of discount general merchandise stores and specialty pharmacy-only locations. The company filed bankruptcy on Sept. 9 under Chapter 11 case number 19-11984.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.