Rural Retailer Fred’s Gets Court Approval of Liquidation Plan

Discount retailer Fred’s Inc.'s journey through bankruptcy is coming to an end, now that a bankruptcy court has approved the retailer’s Chapter 11 liquidation plan providing for an estimated 5% recovery for unsecured creditors.

The plan, approved Monday by Judge Christopher Sontchi of the U.S. Bankruptcy Court for the District of Delaware, was ultimately unopposed.

The retailer liquidation is rare in that it provides some return for unsecured creditors, Fred’s lawyer, Adam Shiff of Kasowitz Benson Torres LLP, said at a remote hearing Monday.

Virtually all of the store’s assets have been sold since Fred’s filed Chapter 11 in ...