Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In re: FRED’S, INC., et al.		Case No. 19-11984 (CSS)
		Reporting Period: December 1, 2019 to January 4, 2020

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				2/4/2020
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.

FRED’S, INC., et al.

DEBTORS AND DEBTORS IN POSSESSION

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

For period from December 1, 2019 to January 4, 2020


($ in 000’s) Cash Flow Summary	Current Month			Cumulative
Receipts
FS Collections		—			28,296
Rx Collections ⁽¹⁾		2,839			32,012
Asset Sales		15,070			60,803
Other Collections		1,459			4,178

Total Cash Receipts		19,367			125,289
Disbursements
FS Merchandise		(26	)		(856	)
RX Merchandise		—			(10,670	)
Payroll and Other Employee Obligations		(343	)		(12,180	)
Rent		(73	)		(2,158	)
Sales Tax		(5	)		(3,971	)
Utilities		(195	)		(2,418	)
Other Operating Disbursements		(826	)		(10,924	)
Third Party Rx Reimbursement		(3,605	)		(6,239	)
Other Non-Operating Disbursements		(3,847	)		(27,597	)

Total Cash Disbursements		(8,920	)		(77,014	)
Net Cash Flow⁽²⁾		10,447			48,275

(1)

The Company collected pharmacy proceeds on behalf 3rd party buyers for sold pharmacies during this period; generally a one week delay from collecting to disbursing those proceeds.

(2)

The Company was operating under cash collateral over the cumulative period and cash was used to pay down the DIP loan.

FRED’S, INC., et al.

DEBTORS AND DEBTORS IN POSSESSION

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


For period from December 1, 2019 to January 4, 2020
Legal Entity	Case Number	Disbursements
Fred’s, Inc.	19-11984	$	8,847
Fred’s Stores of Tennessee, Inc.	19-11982	$	73
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	$	—

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 1/4

Fred’s, Inc.

Regions Bank

Pharmacy Lockbox

7214

—

Fred’s, Inc.

Regions Bank

Payroll

5469

—

Fred’s, Inc.

Regions Bank

Master

5477

298,404

Fred’s, Inc.

Regions Bank

Master Funding

4352

942,847

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

—

Fred’s, Inc.

Bank of America

EDI

4407

95,674

Fred’s, Inc.

MetaBank

Payroll Pay Cards

0011

16,752

Fred’s, Inc.

Regions Bank

Pharmacy Escrow Acct

5963

—

Fred’s, Inc.

Regions Bank

Stub Rent Escrow Acct

5920

84,788

Fred’s, Inc.

Regions Bank

Utility Escrow Acct

5742

359,271

Fred’s, Inc.

Regions Bank

Asset Disposition

4585

30,341,751

FREDS INC 8-K