Bankrupt Fred’s Sells Distribution Center, Stores for $38 Million

Oct. 30, 2019, 6:42 PM

Bankrupt retailer Fred’s Inc. received court approval to sell a Georgia distribution center and some retail properties in two separate deals for $38 million after a bidding war drove up the prices for the assets.

Clothing company Perry Ellis International Inc. submitted the winning bid of $15.7 million for Fred’s Dublin, Georgia, distribution center, topping an initial “stalking horse” offer of $13 million.

Commercial real estate developer R.A. Wilson Enterprises Inc. paid $22.3 million—improving upon its own floor-price offer of $9.5 million—to buy 56 Fred’s store locations across several Southern U.S. states.

The auction was “successful,” Judge Christopher Sontchi of...

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