After 27 Years, Fred's Discount Store filed for a chapter 11 bankruptcy in September. In late 2019, many of its former buildings, like this one in Morrilton, sit empty.
R.A. Wilson Enterprises of Hot Springs has purchased all 56 corporate-owned Fred’s stores in nine states, including 16 in Arkansas.
Rick Wilson, president of the commercial real estate development and investments company, told Arkansas Business the firm expects to invest about $110 million to buy and redevelop the properties. Of that, about $24 million is the purchase price plus closing costs.
The company’s plans are to lease the stores to “Fortune 500 retailers,” Wilson said.
“We will redevelop them and, by March of 2020, they will all be gainfully employing people, local citizens, and they’ll be paying taxes again,” he said. “It’s good news for the state of Arkansas. We hope to turn these into some profit centers. We believe they will, or we wouldn’t be investing over $100 million dollars in them.”
Discount retailer Fred’s filed for Chapter 11 bankruptcy in September; R.A. Wilson Enterprises was the successful bidder at its federal bankruptcy auction in New York City.
R.A. Wilson Enterprises has been “a top-preferred developer for Tractor Supply Co.” since 2006, but Wilson declined to disclose the retailers who will lease the former Fred’s stores.
Last month, Express Rx of Little Rock, a Southeastern regional pharmacy chain, joined MHR Fund Management LLC of New York to buy 10 Fred’s pharmacy locations in rural areas across five Southeastern states. The pharmacies will continue to operate at their current locations under the Express Rx name.
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