Fred's files Chapter 11, closing all remaining stores

[retailisking]

Alden Global kills Payless, and now Fred's...
https://www.retaildive.com/news/freds-files-for-bankruptcy-plans-to-liquidate/562500

[TheFugitive]

Interesting.  Chapter 11 is a reorganization.  Chapter 7 is a liquidation.
Here they are filing Chapter 11 yet they are still closing all of their stores.
It's a bit unusual.

[danfifepsu]

Interesting.  Chapter 11 is a reorganization.  Chapter 7 is a liquidation.
Here they are filing Chapter 11 yet they are still closing all of their stores.
It's a bit unusual.

Most companies that file for Chapter 11 eventually end up converting to Chapter 7, like Toys r us.

[deerwrecker2017]

Interesting.  Chapter 11 is a reorganization.  Chapter 7 is a liquidation.
Here they are filing Chapter 11 yet they are still closing all of their stores.
It's a bit unusual.

Most companies that file for Chapter 11 eventually end up converting to Chapter 7, like Toys r us.

That happened with Ames regarding it's second bankruptcy as it filed for Chapter 11 only to end up a year after the bankruptcy filing to convert it to Chapter 7 and shut it all down.

[TheFugitive]

The Chapter 7 was the direct result of the second Chapter 11 being unsuccessful.

[deerwrecker2017]

The Chapter 7 was the direct result of the second Chapter 11 being unsuccessful.

That is true with all Chapter 11 Bankruptcies that do get converted to Chapter 7 when the companies that file realize that the Chapter 11 will fail and they end up with no choice but to Liquidate.