(CNN) Discount chain Fred's is looking for a new strategy. It's first step is closing a lot of stores.

Fred's FRED The Memphis-based retailer will close 159 of its 557 stores, it said in a statement Thursday. The stores, which are spread across states including Texas, Arkansas, Alabama, Georgia, Louisiana, Mississippi, Kentucky, and Tennessee, were chosen because they were underperforming or unprofitable,Chief Executive Officer Joseph Anto said. Many of them had leases that were expiring soon.

Fred's began liquidation sales at the closing stores on Thursday. They will be closed by the end of May.

The retailer "will make every effort" to find the stores' employees new jobs in at other locations, Anto said in a statement.

Fred's also said that it hired investment bank PJ Solomon to help it review its strategy going forward.