SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):March 22, 2002 (March 22, 2002)
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FRED'S, INC.
(Exact name of registrant as specified in its charter)
Tennessee 00-19288 62-0634010
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(State or other jurisdiction (Commission (IRS employer
of incorporation) file number) identification No.)
4300 New Getwell Road, Memphis, Tennessee 38118
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (901) 365-8880
Item 5. Other Events.
1. On March 22, 2002, Fred's Inc. announced plans to construct a new
distribution center in Dublin, Laurens County, Georgia, pending the completion
of final documentation and the receipt of all required governmental approvals.
The $25 million, 600,000 square-foot distribution center will augment the
capacity provided by the Company's original Memphis center. Construction of the
Dublin distribution center is expected to begin in April and it is estimated
that the facility will be fully operational by March 2003.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Financial Statement.
Not applicable.
(b) Pro Forma Financia Information.
Not applicable.
(c) Exhibits.
Exhibit No. Description
99.2 Press Release dated March 22, 2002, Announcing Fred's plans to construct a
new distribution center.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: March 22, 2002
FRED'S, INC.
By: /s/ Jerry A. Shore
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Jerry A. Shore, Executive Vice President
and Chief Financial Officer
Exhibit Index
Exhibit
Number Description
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99.1 Press release issued by Fred's, Inc. dated March 22, 2002.
Exhibit 99.1
Press Release
[Letterhead]
4300 New Getwell Road, Memphis, Tennessee 38118
Contact: Jerry A. Shore
Executive Vice President and
Chief Financial Officer
(901) 362-3733, Ext. 2217
FRED'S ANNOUNCES NEW DISTRIBUTION CENTER in Dublin, Georgia
MEMPHIS, Tenn. (March 22, 2002) - Fred's Inc. (Nasdaq/NM: FRED) today
announced plans to construct a new distribution center in Dublin, Laurens
County, Georgia, pending the completion of final documentation and the receipt
of all required governmental approvals. The $25 million, 600,000 square-foot
distribution center will augment the capacity provided by the Company's original
Memphis center, which presently serves almost 400 stores in an 13-state market
region covering the Southeast and Midwest. Because of its location, this new
center will be positioned to serve Fred's growing presence in Alabama, Georgia,
Florida, North Carolina, and South Carolina as well as its expected growth into
new markets in the future.
Commenting on the announcement, Michael J. Hayes, Chief Executive Officer
of Fred's, said, "We are very excited to announce our partnership with the City
of Dublin, Laurens County, and the State of Georgia to develop this new
facility. With our sales expanding at a compound annual rate of almost 17% over
the past five years, increasing to more than $900 million in fiscal 2001, Fred's
growth has created a need for additional distribution capacity for our chain.
After considering our options, it is clear to us that the Dublin site has
distinct advantages because of location relative to our stores, both present and
planned, along with a skilled labor force, its access to major interstate
highways, and the pro-business attitude within the state. In addition, the
intangible considerations for Dublin - including the commitment and support of
Governor Roy Barnes, State Representative Dubose Porter, Georgia Department of
Industry and Trade Commissioner R.K. Sehgal, the Dublin-Laurens County
governments, and the Development Authority - are compelling. We appreciate the
work of the local, county and state officials on our behalf and we look forward
to our partnership with the community."
Hayes said that Fred's plans to begin construction of the Dublin
distribution center next month and expects the facility to be fully operational
by March 2003. Upon opening, the center will initially create from between 150
to 250 new jobs, which should increase to approximately 300 as the facility
reaches full capacity. Situated on a 136-acre site located on State Highway 257,
the center will be designed with potential future expansion in mind and, as a
result, can be expanded to about one million square feet if conditions warrant.
Fred's expects to fund the $25 million project, which includes equipment and
fixtures, using internally generated funds.
Fred's Inc., headquartered in Memphis, Tennessee operates 385 discount
general merchandise stores, including 26 franchised Fred's stores in the
southeastern United States. For more information about the Company, visit Fred's
website at www.fredsinc.com.
Comments in this news release that are not historical facts are
forward-looking statements that involve risks and uncertainties which could
cause actual results to differ materially from those projected in the
forward-looking statements. These risks and uncertainties include, but are not
limited to, general economic trends, changes in consumer demand or purchase
patterns, delays or interruptions in the flow of merchandise between the
Company's distribution center and its stores or between the Company's suppliers
and same, a disruption in the Company's data processing services, costs and
delays in acquiring or developing new store sites, and other contingencies
discussed in the Company's Securities and Exchange Commission filings. Fred's
undertakes no obligation to release revisions to these forward-looking
statements to reflect events or circumstances after the date hereof or to
reflect the occurrence of unforeseen events, except as required to be reported
under the rules and regulations of the Securities and Exchange Commission
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