Exhibit 99.1

Case 19-11984-CSS Doc 571 Filed 12/03/19 Page 1 of 13

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In re: FRED’S, INC., et al.		Case No. 19-11984 (CSS)
		Reporting Period: October 6, 2019 to November 2, 2019

MONTHLY OPERATING REPORT

File with Court and submit copy to United States Trustee within 20 days after end of month

Submit copy of report to any official committee appointed in the case.

REQUIRED DOCUMENTS

Form No.

Document
Attached

Explanation
Attached

Affidavit/Supplement
Attached

Schedule of Cash Receipts and Disbursements

MOR-1

✓

Bank Reconciliation (or copies of debtor’s bank reconciliations)

MOR-1a

✓

Schedule of Professional Fees Paid

MOR-1b

✓

Copies of bank statements

Cash disbursements journals

Statement of Operations

MOR-2

✓

Balance Sheet

MOR-3

✓

Status of Postpetition Taxes

MOR-4

✓

Copies of IRS Form 6123 or payment receipt

Copies of tax returns filed during reporting period

Summary of Unpaid Postpetition Debts

MOR-4

✓

Listing of aged accounts payable

MOR-4

✓

Accounts Receivable Reconciliation and Aging

MOR-5

✓

Debtor Questionnaire

MOR-5

✓

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.



Signature of Debtor				Date


Signature of Joint Debtor				Date

/s/ Mark Renzi				12/3/2019
Signature of Authorized Individual*				Date

Mark Renzi				Chief Restructuring Officer
Printed Name of Authorized Individual				Title of Authorized Individual

*	Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

Case 19-11984-CSS Doc 571 Filed 12/03/19 Page 2 of 13

FRED’S, INC., et al.

DEBTORS AND DEBTORS IN POSSESSION

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

For period from October 6, 2019 to November 2, 2019


($ in 000’s) Cash Flow Summary	Current Month			Cumulative
Beginning Cash Balance		—			—
Receipts
FS Collections		13,711			28,280
Rx Collections		10,811			24,705
Asset Sales		12,615			17,320
Other Collections		1,627			1,922

Total Cash Receipts		38,765			72,228
Disbursements
FS Merchandise		(415	)		(598	)
RX Merchandise		(2,822	)		(10,670	)
Payroll and Other Employee Obligations		(4,736	)		(10,174	)
Rent		(53	)		(1,167	)
Sales Tax		(1,545	)		(3,111	)
Utilities		(848	)		(1,230	)
Other Operating Disbursements		(4,239	)		(8,112	)
Non-Operating Disbursements		(15,000	)		(21,064	)

Total Cash Disbursements		(29,658	)		(56,126	)
Net Cash Flow		9,107			16,102

Note: The Company was operating under cash collateral during this period and all net cash flows were used to pay down the DIP loan.

Case 19-11984-CSS Doc 571 Filed 12/03/19 Page 3 of 13

FRED’S, INC., et al.

DEBTORS AND DEBTORS IN POSSESSION

Total Disbursements by Filed Legal Entity (unaudited, in thousands)


For period from October 6, 2019 to November 2, 2019
Legal Entity	Case Number		Disbursements
Fred’s, Inc.		19-11984		29,604
Fred’s Stores of Tennessee, Inc.		19-11982		53
505 N. Main Opp, LLC		19-11983		—
National Equipment Management and Leasing, Inc.		19-11985		—
National Pharmaceutical Network, Inc.		19-11986		—
Summit Properties – Bridgeport, LLC		19-11987		—
Summit Properties – Jacksboro, LLC		19-11988		—
Reeves-Sain Drug Store, Inc.		19-11989		—

Case 19-11984-CSS Doc 571 Filed 12/03/19 Page 4 of 13

FRED’S, INC., et al.

DEBTORS AND DEBTORS IN POSSESSION

Bank Reconciliations (unaudited)

Values in $

Debtor Name

Name of Institution

Type of Account

Account Number

(last 4 digits)

Account balance

as of 11/2

Fred’s, Inc.

Regions Bank

Pharmacy Lockbox

7214

—

Fred’s, Inc.

Regions Bank

Payroll

5469

—

Fred’s, Inc.

Regions Bank

Master

5477

25,525

Fred’s, Inc.

Regions Bank

Master Funding

4352

(3,484

)

Fred’s, Inc.

Regions Bank

Controlled Disbursement

3377

—

Fred’s, Inc.

Regions Bank

Alcohol

2440

—

Fred’s, Inc.

Regions Bank

Sales Tax

2459

—

Fred’s, Inc.

Regions Bank

Import Customs

5899

—

Fred’s, Inc.

Regions Bank

TN Lottery

4565

—

Fred’s, Inc.

Regions Bank

AR Lottery

4638

—

Fred’s, Inc.

Regions Bank

GA Lottery

4654

—

Fred’s, Inc.

Regions Bank

TX Lottery

3132

—

Fred’s, Inc.

Regions Bank

FL Lottery

5750

—

Fred’s, Inc.

Regions Bank

KY Lottery

3430

—

Fred’s, Inc.

Regions Bank

MO Lottery

3449

—

Fred’s, Inc.

Regions Bank

NC Education Lottery

3457

—

Fred’s, Inc.

Bank of America

Import Letters of Credit

3162

11,420

Fred’s, Inc.

Bank of America

EDI

4407

98,217

Fred’s, Inc.

MetaBank

Payroll Pay Cards

0011

18,625

Fred’s, Inc.

Regions Bank

Pharmacy Escrow Acct

5963

350,000

Fred’s, Inc.

Regions Bank

Stub Rent Escrow Acct

5920

1,000,000

Fred’s, Inc.

Regions Bank

Utility Escrow Acct

5742

359,271

Fred’s Stores of Tennessee, Inc.

Ameris Bank

Store Operating

0060

2,320

Fred’s Stores of Tennessee, Inc.

Anderson Brothers Bank

Store Operating

0502

5,739

Fred’s Stores of Tennessee, Inc.

Arvest

Store Operating

0539

2,882

Fred’s Stores of Tennessee, Inc.

Arvest Bank

Store Operating

2388

1,161

Fred’s Stores of Tennessee, Inc.

Arvest Bank

Store Operating

0017

1,332

Fred’s Stores of Tennessee, Inc.

Bancorp South

Store Operating

0828

3,919

Fred’s Stores of Tennessee, Inc.

Bancorp South

Store Operating

8712

3,299

Fred’s Stores of Tennessee, Inc.

Bancorp South

Store Operating

5706

1,560

Fred’s Stores of Tennessee, Inc.

Bancorp South

Store Operating

4178

3,588

Fred’s Stores of Tennessee, Inc.

Bancorp South

Store Operating

5348

1,886

Fred’s Stores of Tennessee, Inc.

Bancorp South

Store Operating

0775

2,117

Fred’s Stores of Tennessee, Inc.

Bank of Dade

Store Operating

2384

998

Fred’s Stores of Tennessee, Inc.

Bank of Dudley

Store Operating

9392

2,537

Fred’s Stores of Tennessee, Inc.

Bank of Early

Store Operating

0759

6,441

Fred’s Stores of Tennessee, Inc.

Bank of Montgomery

Store Operating

8617

2,205

Fred’s Stores of Tennessee, Inc.

Bank of Morton

Store Operating

0318

5,010

Fred’s Stores of Tennessee, Inc.

Bank of Ripley

Store Operating

4384

3,754

Fred’s Stores of Tennessee, Inc.

Bank of The Ozarks

Store Operating

6901

1,732

Fred’s Stores of Tennessee, Inc.

Bank of Wiggins

Store Operating

7738

1,508

Fred’s Stores of Tennessee, Inc.

Bank of Winona

Store Operating

0663

773

Fred’s Stores of Tennessee, Inc.

Bank Plus

Store Operating

7511

1,359

Fred’s Stores of Tennessee, Inc.

Bank Plus

Store Operating

0738

130

Fred’s Stores of Tennessee, Inc.

Bank Plus

Store Operating

1586

3,168

Fred’s Stores of Tennessee, Inc.

Bank Plus

Store Operating

3391

1,479

Fred’s Stores of Tennessee, Inc.

Bank South

Store Operating

2673

1,335

Fred’s Stores of Tennessee, Inc.

Bankfirst Financial Services

Store Operating

4205

7,520

Fred’s Stores of Tennessee, Inc.

Banterra Bank

Store Operating

6801

1,921

Fred’s Stores of Tennessee, Inc.

BB&T

Store Operating

4848

9,716

Fred’s Stores of Tennessee, Inc.

Cadence Bank

Store Operating

2705

4,312

Fred’s Stores of Tennessee, Inc.

Cadence Bank

Store Operating

8694

2,865

Fred’s Stores of Tennessee, Inc.

Caldwell Bank & Trust

Store Operating

9751

1,256

Fred’s Stores of Tennessee, Inc.

CB&S Bank

Store Operating

9793

1,852

Fred’s Stores of Tennessee, Inc.

CB&S Bank

Store Operating

4813

2,709

Fred’s Stores of Tennessee, Inc.

Centennial Bank

Store Operating

3515

954

Fred’s Stores of Tennessee, Inc.

Century Next Bank

Store Operating

2128

1,135

Fred’s Stores of Tennessee, Inc.

Century Next Bank

Store Operating

8784

3,706

Fred’s Stores of Tennessee, Inc.

Chester County Bank

Store Operating

4427

1,849

Fred’s Stores of Tennessee, Inc.

Citizens Bank

Store Operating

9501

2,711

Fred’s Stores of Tennessee, Inc.

Citizens Bank

Store Operating

2495

586

Fred’s Stores of Tennessee, Inc.

Citizens Bank

Store Operating

2867

1,708

Fred’s Stores of Tennessee, Inc.

Citizens Bank

Store Operating

7897

10,362

Fred’s Stores of Tennessee, Inc.

Citizens Tri-County Bank

Store Operating

1016

7,457

Fred’s Stores of Tennessee, Inc.

City National Bank

Store Operating

8174

2,566

Fred’s Stores of Tennessee, Inc.

Colony Bank

Store Operating

1991

2,533

Fred’s Stores of Tennessee, Inc.

Colony Bank

Store Operating

3410

2,349

Fred’s Stores of Tennessee, Inc.

Commercial State Bank

Store Operating

5801

604

Fred’s Stores of Tennessee, Inc.

Community One

Store Operating

3865

624

Fred’s Stores of Tennessee, Inc.

Concordia Bank

Store Operating

8829

1,227

Fred’s Stores of Tennessee, Inc.

Concordia Bank & Trust Co

Store Operating

7288

3,167

Fred’s Stores of Tennessee, Inc.

Cornerstone Bank

Store Operating

0096

779

Fred’s Stores of Tennessee, Inc.

Delta Bank

Store Operating

4022

1,799

Fred’s Stores of Tennessee, Inc.

Delta Bank

Store Operating

9366

2,930

Case 19-11984-CSS Doc 571 Filed 12/03/19 Page 5 of 13

FRED’S, INC., et al.

DEBTORS AND DEBTORS IN POSSESSION

Bank Reconciliations (unaudited)

Values in $

Debtor Name

Name of Institution

Type of Account

Account Number

(last 4 digits)

Account balance

as of 11/2

Fred’s Stores of Tennessee, Inc.

Farmer State Bank

Store Operating

6013

16,760

Fred’s Stores of Tennessee, Inc.

Farmers & Merchants Bank

Store Operating

6822

45,036

Fred’s Stores of Tennessee, Inc.

Farmers & Merchants Bank

Store Operating

7301

3,795

Fred’s Stores of Tennessee, Inc.

First American National Bank

Store Operating

4848

6,192

Fred’s Stores of Tennessee, Inc.

First Bank

Store Operating

7244

1,741

Fred’s Stores of Tennessee, Inc.

First Bank

Store Operating

2166

2,232

Fred’s Stores of Tennessee, Inc.

First Bank

Store Operating

6219

(879

)

Fred’s Stores of Tennessee, Inc.

First Bank

Store Operating

7451

2,556

Fred’s Stores of Tennessee, Inc.

First Choice Bank

Store Operating

1139

3,589

Fred’s Stores of Tennessee, Inc.

First Citizens

Store Operating

9466

4,018

Fred’s Stores of Tennessee, Inc.

First Citizens

Store Operating

5539

4,373

Fred’s Stores of Tennessee, Inc.

First Citizens

Store Operating

4001

1,724

Fred’s Stores of Tennessee, Inc.

First Citizens

Store Operating

3001

2,717

Fred’s Stores of Tennessee, Inc.

First Citizens Bank

Store Operating

2927

1,755

Fred’s Stores of Tennessee, Inc.

First Farmers & Merchants

Store Operating

5274

2,109

Fred’s Stores of Tennessee, Inc.

First Farmers & Merchants Bank

Store Operating

0360

974

Fred’s Stores of Tennessee, Inc.

First Federal Bank of Louisiana

Store Operating

5467

1,609

Fred’s Stores of Tennessee, Inc.

First Guaranty Bank

Store Operating

5568

4,766

Fred’s Stores of Tennessee, Inc.

First Guaranty Bank

Store Operating

7389

3,218

Fred’s Stores of Tennessee, Inc.

First Guaranty Bank

Store Operating

2625

910

Fred’s Stores of Tennessee, Inc.

First Guaranty Bank

Store Operating

1161

1,304

Fred’s Stores of Tennessee, Inc.

First National Bank

Store Operating

2124

460

Fred’s Stores of Tennessee, Inc.

First National Bank

Store Operating

4027

2,100

Fred’s Stores of Tennessee, Inc.

First National Bank

Store Operating

1643

1,484

Fred’s Stores of Tennessee, Inc.

First National Bank of Wynne

Store Operating

0901

1,757

Fred’s Stores of Tennessee, Inc.

First Security Bank

Store Operating

0193

129

Fred’s Stores of Tennessee, Inc.

First Security Bank

Store Operating

9973

1,484

Fred’s Stores of Tennessee, Inc.

First Security Bank

Store Operating

5693

1,399

Fred’s Stores of Tennessee, Inc.

First State Bank

Store Operating

9547

1,721

Fred’s Stores of Tennessee, Inc.

First State Bank

Store Operating

8883

2,059

Fred’s Stores of Tennessee, Inc.

FNBC

Store Operating

9890

1,080

Fred’s Stores of Tennessee, Inc.

German American Bank

Store Operating

8401

2,769

Fred’s Stores of Tennessee, Inc.

Gibsland Bank & Trust

Store Operating

6231

1,273

Fred’s Stores of Tennessee, Inc.

Gibsland Bank & Trust

Store Operating

5901

4,152

Fred’s Stores of Tennessee, Inc.

Glennville Bank

Store Operating

8454

3,161

Fred’s Stores of Tennessee, Inc.

Hancock Bank

Store Operating

5810

6,763

Fred’s Stores of Tennessee, Inc.

Headland National Bank

Store Operating

6073

16,543

Fred’s Stores of Tennessee, Inc.

Helena National Bank

Store Operating

7434

1,638

Fred’s Stores of Tennessee, Inc.

Home Trust Bank

Store Operating

3070

2,239

Fred’s Stores of Tennessee, Inc.

Iberia Bank

Store Operating

1953

6,323

Fred’s Stores of Tennessee, Inc.

JD Bank

Store Operating

8193

3,151

Fred’s Stores of Tennessee, Inc.

Marion State Bank

Store Operating

5061

1,429

Fred’s Stores of Tennessee, Inc.

Mckenzie Banking Co

Store Operating

3153

1,668

Fred’s Stores of Tennessee, Inc.

Mechanics Bank

Store Operating

3393

1,380

Fred’s Stores of Tennessee, Inc.

Merchants & Farmers Bank

Store Operating

2565

1,010

Fred’s Stores of Tennessee, Inc.

Merchants & Farmers Bank

Store Operating

1095

2,981

Fred’s Stores of Tennessee, Inc.

Metro Bank

Store Operating

3131

3,079

Fred’s Stores of Tennessee, Inc.

Morgantown Bank & Trust

Store Operating

3301

1,364

Fred’s Stores of Tennessee, Inc.

Mount Vernon Bank

Store Operating

0473

1,978

Fred’s Stores of Tennessee, Inc.

Northeast Georgia Bank

Store Operating

5697

3,339

Fred’s Stores of Tennessee, Inc.

Peoples Bank

Store Operating

5520

1,844

Fred’s Stores of Tennessee, Inc.

Peoples Trust Bank

Store Operating

0345

3,531

Fred’s Stores of Tennessee, Inc.

Piggott State Bank

Store Operating

3085

1,314

Fred’s Stores of Tennessee, Inc.

Pinnacle Bank

Store Operating

4780

954

Fred’s Stores of Tennessee, Inc.

Planters First Bank

Store Operating

2882

2,850

Fred’s Stores of Tennessee, Inc.

Priority One Bank

Store Operating

2258

1,969

Fred’s Stores of Tennessee, Inc.

Queensborough National Bank & Trust Co

Store Operating

6601

4,668

Fred’s Stores of Tennessee, Inc.

Queensborough National Bank & Trust Co

Store Operating

7343

4,762

Fred’s Stores of Tennessee, Inc.

Regions Bank

Store Operating

0077

17,581

Fred’s Stores of Tennessee, Inc.

Regions Bank

Store Operating

0115

51,795

Fred’s Stores of Tennessee, Inc.

Regions Bank

Store Operating

0058

4,257

Fred’s Stores of Tennessee, Inc.

Renasant Bank

Store Operating

5445

3,465

Fred’s Stores of Tennessee, Inc.

Renasant Bank

Store Operating

1226

3,357

Fred’s Stores of Tennessee, Inc.

Renasant Bank

Store Operating

4205

1,264

Fred’s Stores of Tennessee, Inc.

Renasant Bank

Store Operating

1349

1,757

Fred’s Stores of Tennessee, Inc.

Richton Bank and Trust Co

Store Operating

2262

1,656

Fred’s Stores of Tennessee, Inc.

Robertson Banking Company

Store Operating

2891

805

Fred’s Stores of Tennessee, Inc.

Sabine State

Store Operating

1535

1,698

Fred’s Stores of Tennessee, Inc.

Sabine State Bank & Trust Co

Store Operating

0583

5,198

Fred’s Stores of Tennessee, Inc.

Security State Bank

Store Operating

3456

2,436

Fred’s Stores of Tennessee, Inc.

Signature Bank of Arkansas

Store Operating

0010

720

Fred’s Stores of Tennessee, Inc.

Simmons Bank

Store Operating

1621

2,895

Fred’s Stores of Tennessee, Inc.

Simmons First

Store Operating

1696

2,755

Fred’s Stores of Tennessee, Inc.

Simmons First Bank

Store Operating

0944

1,350

Case 19-11984-CSS Doc 571 Filed 12/03/19 Page 6 of 13

FRED’S, INC., et al.

DEBTORS AND DEBTORS IN POSSESSION

Bank Reconciliations (unaudited)

Values in $

Debtor Name

Name of Institution

Type of Account

Account Number

(last 4 digits)

Account balance

as of 11/2

Fred’s Stores of Tennessee, Inc.

Simmons First National Bank

Store Operating

7473

1,551

Fred’s Stores of Tennessee, Inc.

South Crest

Store Operating

2024

2,825

Fred’s Stores of Tennessee, Inc.

South State Bank

Store Operating

8401

5,277

Fred’s Stores of Tennessee, Inc.

Southern Bank & Trust

Store Operating

1102

1,699

Fred’s Stores of Tennessee, Inc.

Suntrust

Store Operating

6390

1,513

Fred’s Stores of Tennessee, Inc.

TD Bank

Store Operating

0141

6,895

Fred’s Stores of Tennessee, Inc.

Tensas State Bank

Store Operating

1820

4,783

Fred’s Stores of Tennessee, Inc.

The Bank of Eastman

Store Operating

8464

4,161

Fred’s Stores of Tennessee, Inc.

The Bank of Lafayette

Store Operating

9018

861

Fred’s Stores of Tennessee, Inc.

The Heritage Bank

Store Operating

6965

795

Fred’s Stores of Tennessee, Inc.

The Heritage Bank

Store Operating

4468

3,763

Fred’s Stores of Tennessee, Inc.

The Heritage Bank

Store Operating

8388

2,838

Fred’s Stores of Tennessee, Inc.

Tippins Bank & Trust Co

Store Operating

9797

3,023

Fred’s Stores of Tennessee, Inc.

Tower Community Bank

Store Operating

6901

1,682

Fred’s Stores of Tennessee, Inc.

Town & Country National Bank

Store Operating

0427

8,902

Fred’s Stores of Tennessee, Inc.

Trustmark National Bank

Store Operating

7279

3,787

Fred’s Stores of Tennessee, Inc.

Trustmark National Bank

Store Operating

0192

3,563

Fred’s Stores of Tennessee, Inc.

Trustmark National Bank

Store Operating

5999

5,671

Fred’s Stores of Tennessee, Inc.

Trustmark National Bank

Store Operating

1891

3,194

Fred’s Stores of Tennessee, Inc.

United Community Bank

Store Operating

9868

7,400

Fred’s Stores of Tennessee, Inc.

United Community Bank

Store Operating

4323

830

Fred’s Stores of Tennessee, Inc.

Valley National Bank

Store Operating

6008

9,631

Fred’s Stores of Tennessee, Inc.

Warren Bank & Trust Co

Store Operating

1779

2,195

Fred’s Stores of Tennessee, Inc.

Wells Fargo

Store Operating

3460

32,130

Fred’s Stores of Tennessee, Inc.

Regions Bank

Store Operating

4399

2,878

NOTE: Account Balances provided as of 11/2 or date of latest account activity

Case 19-11984-CSS Doc 571 Filed 12/03/19 Page 7 of 13

FRED’S, INC., et al.

DEBTORS AND DEBTORS IN POSSESSION

Total Disbursements to Retained Professionals (unaudited, in thousands)


For period from October 6, 2019 to November 2, 2019
Retained Professionals	Approved Amounts		Disbursements
Total	$	—	$	—

Case 19-11984-CSS Doc 571 Filed 12/03/19 Page 8 of 13

FRED’S, INC., et al.

DEBTORS AND DEBTORS IN POSSESSION

MOR 2 - CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands)


For period from October 6, 2019 to November 2, 2019
Net sales	22,454
Cost of goods sold	32,878

Gross profit	(10,424	)
Depreciation and amortization	548
Selling, general and administrative expenses	16,412

Operating loss	(27,384	)
Interest expense	9

Loss before income taxes	(27,393	)
Provision (benefit) for income taxes	—

Net loss from continuing operations	(27,393	)
Net loss from discontinued operations	—

Net Loss	(27,393	)

Case 19-11984-CSS Doc 571 Filed 12/03/19 Page 9 of 13

FRED’S, INC., et al.

DEBTORS AND DEBTORS IN POSSESSION

MOR 3 - CONSOLIDATED BALANCE SHEETS (unaudited, in thousands)


	As of November 2, 2019
ASSETS
Current assets:
Cash and cash equivalents		3,882,637
Inventories		2,256,772
Receivables, less allowance for doubtful accounts of $2,344 and $1,360, respectively		5,971,565
Other non-trade receivables		42,130,987
Prepaid expenses and other current assets		4,644,054

Total Current Assets		58,886,016
Property and equipment, less accumulated depreciation and amortization		38,427,219
Goodwill		—
Intangible assets, net		2,931,812
Other noncurrent assets, net		84,649,170

Total Assets		184,894,217
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		56,806,522
Current portion of indebtedness		287,047
Accrued expenses and other		60,597,330

Total Current Liabilities		117,690,899
Long-term portion of indebtedness		14,394,073
Other noncurrent liabilities		87,606,444

Total Liabilities		219,691,416
Shareholders’ Equity:
Preferred stock, nonvoting, no par value		—
Preferred stock, Series A junior participating nonvoting, no par value		—
Preferred stock, Series C junior participating voting, no par value		—
Common stock, Class A voting, no par value		128,130,618
Common stock, Class B nonvoting, no par value		—
Treasury Stock, at cost		(10,822,888	)
Retained earnings		(152,660,398	)
Accumulated other comprehensive income		555,469

Total shareholders’ equity		(34,797,199	)
Total liabilities and shareholders’ equity		184,894,217

Case 19-11984-CSS Doc 571 Filed 12/03/19 Page 10 of 13

FRED’S, INC., et al.

DEBTORS AND DEBTORS IN POSSESSION

MOR - 4 Status of Post Petition Taxes

The Debtors continue to pay post-petition taxes as they become due and are current on those payments. If payments become past due the Debtors will include a schedule in the MOR listing past due post-petition taxes.

Case 19-11984-CSS Doc 571 Filed 12/03/19 Page 11 of 13

FRED’S, INC., et al.

DEBTORS AND DEBTORS IN POSSESSION

Summary of Unpaid Post-Petition Debts (unaudited, in Thousands)


Post-Petition Debts Aging Amount	Total
Current		323
0 - 30 Days Old		724
31 - 60 Days Old		159
61 - 90 Days Old		—
91 + Days Old		—

Total Post-Petition Debts		1,206

Case 19-11984-CSS Doc 571 Filed 12/03/19 Page 12 of 13

FRED’S, INC., et al.

DEBTORS AND DEBTORS IN POSSESSION

Trade Receivable Aging (unaudited, in Thousands)


	Credit Card		Pharmacy		Total
Trade Receivable Aging Amount
Current		—		—		—
0 - 30 Days Old		16		7,615		7,631
31 - 60 Days Old		—		—		—
61 - 90 Days Old		—		—		—
91 + Days Old		—		—		—

Total Trade Receivable		16		7,615		7,631

NOTE: The above amounts solely include trade receivables and do not include intercompany balances and may not agree to the balance sheet due to credits and other items.

Case 19-11984-CSS Doc 571 Filed 12/03/19 Page 13 of 13

FRED’S, INC., et al.

DEBTORS AND DEBTORS IN POSSESSION

Questionnaire

Yes

1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.

During this period, the debtors liquidated certain inventory and FF&E for amounts below normal course pricing. Real estate, pharmacy scripts, and pharmacy inventory have also been sold to third-party buyers. The Debtor’s held an auction on 10/28/2019 for all remaining owned real estate and the Dublin Distribution Center.

2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.

3. Have all post-petition tax returns been filed timely? If no, provide an explanation below.

4. Are workers compensation, general liability, and other necessary insurance coverages in effect? If no, provide an explanation below.

5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.

Account Name

Purpose

Business

Acct Number

Bank Name

Date

Stub Rent Escrow

Required Stub Rent Escrow Account

Fred’s, Inc

XXXXX5920

Regions
Bank

10/21/2019

FREDS INC 8-K