On Wednesday, Hilco Consumer-Retail announced that it will be overseeing the closure of all 328 American Freight locations across the country. This decision comes as a result of Franchise Group, Inc. (FRG), the parent company of American Freight, filing for Chapter 11 bankruptcy due to ongoing inflation and economic challenges in the durable goods sector.
The Chapter 11 filing was made at U.S. Bankruptcy Court in Delaware with a focus on strengthening FRG’s strongest brands – Pet Supplies Plus, The Vitamin Shoppe and Buddy’s Home Furnishings – for future growth opportunities. It is important to note that franchise operations for these three brands are not included in this filing.
According to Andrew Laurence, president and CEO of FRG, each business has proven its value proposition by providing excellent products and services to customers throughout this process seamlessly. With an improved balance sheet from this restructuring effort, FRG will continue supporting these businesses as they strive towards further growth success.
