After closing a multitude of stores over the last few months, Fred’s (FRED) has announced it is filing for Chapter 11 bankruptcy protection. The company said it will “wind down” its operations and close all of its stores within the next 60 days.

Liquidation sales at Fred’s remaining stores have already begun. The retailer said it does expect to continue fulfilling prescriptions at most of its pharmacy locations while it looks to sell off this portion of its business under the court’s supervision.

The company has requested that the bankruptcy court approve its debtor-in-possession financing for certain lenders, providing up to $35 million in new funding.

Fred’s has also asked the court to authorize continued wage payment to employees as well as their benefits without interruption through the Chapter 11 bankruptcy process.

“Despite our team’s best efforts, we were not able to avoid this outcome,” Joe Anto, CEO at Fred’s said in a statement. “I want to thank all of our employees for their hard work and continued support of the Company as we wind-down our operations.”

The company is working with Kasowitz Benson Torres LLP as its legal counsel while Akin Gump Strauss Hauer & Feld LLP is serving as its special corporate counsel. Berkley Research Group, LLP is Fred’s restructuring advisor.

Fred’s has been in operation since 1947, serving the southeastern portion of the U.S. with its stores. At last count, the company had 80 locations remaining, USA Today reported.

Shares of Fred's stock were down 40.63 percent as of 10:55 a.m. ET on Monday.

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Shopko closed all of its 360 stores as part of its Chapter 11 bankruptcy filing, after previously announcing it would only close 38 locations. Signs advertise the closing of a Sears store on May 3, 2018 in Chicago, Illinois. The store, which opened in 1938, is the city's last remaining Sears store. Sears opened its first retail store in Chicago in 1925. Getty Images/Scott Olson
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