Discount retailer Fred's announced Monday it is filing for Chapter 11 bankruptcy protection and expects all of its stores to close in the next 60 days following liquidation sales.

“Despite our team’s best efforts, we were not able to avoid this outcome,” Fred's CEO Joe Anto 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.”

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Fred's pharmacies will continue to fill prescriptions during the liquidation phase, the company said.

USA TODAY reports Fred's had 568 stores in 15 states in the southeastern U.S. as recently as Feb. 2.  But the company is now down to 80 stores after several rounds of closures.