Retail furniture chain, American Freight Appliances & Furniture - commonly known as American Freight - is now closing all of its stores following the proceedings made by its parent company, Franchise Group, Inc. after declaring Chapter 11 bankruptcy on November 3, 2024.
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"As part of this strategy, FRG has determined to wind down American Freight, which has struggled due to sustained inflation and macroeconomic challenges facing the large durable goods sector," reads a Franchise Group, Inc. news release shared through PR Newswire. "It will be commencing store closing sales at locations nationwide and online on November 5."
A total of 328 will close as a result while Franchise Group, Inc. restructures. This includes carrying out massive sales with discounts on all remaining inventory. Up to 30% discounts have been spotted on products of all sorts. You can find discounts on items such as bedroom furniture or dining tables, according to the New York Post.
"Our goal is to deliver outstanding value to customers during this full chain closing sale," said Ian Fredericks. He is the CEO of Hilco Consumer-Retail, who is carrying out the closing sales, including new incoming inventory. "Everything is on sale and must be sold," he continued.
A Franchise Reestrucure
Franchise Group's restructuring will not close some of their other brands. These include Pet Supplies Plus and Buddy's Home Furnishings, among others. "Today's announcement to de-lever our balance sheet is a pivotal step forward in enabling our market-leading businesses Pet Supplies Plus, The Vitamin Shoppe, and Buddy's Home Furnishings to realize their full potential," the news release continues.
"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"
The very first American Freight store opened in Lima, Ohio in 1994. Twenty years later, in 2014, the company opened 95 stores in 18 different states. After The Jordan Company purchased the company in October 2014, American Freight was bought by Franchise Group, Inc. in February 2020. They combined it with Sears Outlets under the name American Freight Furniture, Mattress, Appliance.
