On Nov. 3, Franchise Group Inc. (FRG, Delaware, OH), the holding company for retail brands American Freight, Buddy’s Home Furnishings, The Vitamin Shoppe and Pet Supplies Plus, filed for Chapter 11 bankruptcy.
As per the bankruptcy filing, FRG is currently undergoing a restructuring plan, but will continue operating Buddy’s Home Furnishings, The Vitamin Shoppe and Pet Supplies Plus. Franchised locations are not part of the legal proceedings.
“Each of these businesses has a demonstrated value proposition and provides great products and services to customers, which they will continue to do seamlessly during this process. Strengthening FRG’s balance sheet will allow us to enhance our support for these businesses as they advance their growth trajectories,” said FRG President and CEO Andrew Laurence.
On Nov. 5, FRG began liquidating American Freight due to “sustained inflation and economic challenges facing the large durable goods sector.”
The Vitamin Shoppe, a major dietary supplement chain retailer based in Secaucus, NJ, said in a statement: “The Vitamin Shoppe’s business is healthy and strong, with sustainable cash flow and dynamic growth initiatives that remain in motion. Our nearly 700 stores and vitaminshoppe.com are fully open for business and our Health Enthusiast teams are as dedicated as ever to supporting customers on their personal journeys of lifelong wellness. The debt obligations of our parent company necessitated this strategic financial step, which is not reflective of The Vitamin Shoppe’s own financial stability, ongoing commitment to serving our communities, and promising roadmap for future growth.”
For more information, visit https://cases.ra.kroll.com/FRG/.
