Discount sales underway as furniture chain with 300+ locations to close all stores – outlets will disappear from the map

A NATIONAL furniture retail chain has major liquidation sales underway as it closes over 300 locations across 41 states.

The American Freight closures follow the Chapter 11 bankruptcy filing of its parent company, Franchise Group.

Founded in 1994, American Freight is a discount retail chain selling affordable furniture, mattresses, and appliances directly to consumers through warehouse-style stores.

Along with American Freight, the parent company Franchise Group owns Pet Supplies Plus, The Vitamin Shoppe, and Buddy’s Home Furnishings.

Franchise Group filed for Chapter 11 bankruptcy on November 3 and will close down its American Freight banner as part of its restructuring process.

The parent company announced plans to “wind down American Freight, which has struggled due to sustained inflation and macroeconomic challenges facing the large durable goods sector,” in a press release.

The chain will close all 328 US locations as Franchise Group continues with the bankruptcy process.

The closures will take place across 41 states, with states such as Michigan seeing a complete withdrawal of all American Freight locations after 15 are shut down.

Before the hundreds of American Freight locations close for good, shoppers can score liquidation sales up to 30% off.

Living room sets, bedroom furniture, dining tables, appliances, and other items will be discounted, per a press release from Hilco Consumer-Retail, which is managing American Freight sales.

New inventory is also arriving in stores and is expected to sell fast.

“Our goal is to deliver outstanding value to customers during this full chain closing sale,” said Ian Fredericks, CEO of Hilco Consumer-Retail.

“Everything is on sale and must be sold, and we recommend shopping early for the best selection.”

The discounts began in-store and online on November 5.

As the sales proceed, select American Freight financing and delivery services will remain available.

RESTRUCTURING STRATEGIES

American Freight’s going-out-of-business sales and impending store closures are a key component in Franchise Group’s restructuring process.

Pet Supplies Plus, The Vitamin Shoppe, and Buddy’s Home Furnishings will continue operations as usual.

“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,” said Andrew Laurence, Franchise Group president and CEO.

“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 parent company entered an agreement with the credit lenders it owes a majority of its debt, according to case filings.

Franchise Group’s debt will be converted into equity and as part of the deal, its credit lenders will be granted full ownership of the reorganized business.

The lenders will also provide $250 million in debtor-in-possession financing to Franchise Group to ensure it can continue operating.

This funding is part of the “first day” motions Franchise Group filed for, which request permission to keep paying staff and vendors and maintain customer programs throughout the restructuring process.

Big Lots is also caught up in its bankruptcy process, revealing closing plans for five locations in the same state.

Plus, liquidation sales will soon begin as a popular chain with over 800 locations plans to close a store.

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