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What Chapter 11 bankruptcy means
Filing for bankruptcy doesn't always mean the end for an American business.
null - Furniture and appliance retailer American Freight is closing all stores nationwide as part of Chapter 11 bankruptcy proceedings by its parent company, Franchise Group Inc.
The company is shuttering all 328 of its stores and initiating store closing sales nationwide as it winds down its operations while its parent company undergoes restructuring.
On Friday, American Freight said it is offering "significant discounts" on the brand's full assortment of inventory, up to 30%. Products included in the sale range from living room sets, bedroom furniture, dining tables and a selection of scratch and dent and new in-box appliances.
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The closing sales are being managed by Hilco Consumer-Retail.
American Freight is shuttering all 328 of its stores and initiating store closing sales nationwide as it winds down its operations while its parent company undergoes restructuring. (Mike Kemp/In Pictures via Getty Images / Getty Images)
"Our goal is to deliver outstanding value to customers during this full chain closing sale," Hilco Consumer-Retail CEO Ian Fredericks said. "Everything is on sale and must be sold."
The company also said that new inventory is arriving and expected to move quickly.
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Earlier this month, Franchise Group Inc. — which also owns brands including Pet Supplies Plus, The Vitamin Shoppe, and Buddy's Home Furnishings — began bankruptcy proceedings in the U.S. Bankruptcy Court for the District of Delaware.
The proceedings depend on an agreed-upon restructuring deal with holders, aimed at strengthening the Franchise Group’s capital structure and better positioning its other leading brands "for continued sustainable growth."
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Moving forward, Pet Supplies Plus, The Vitamin Shoppe and Buddy's Home Furnishings will continue to serve customers as usual both in-store and online.
A Vitamin Shoppe in Long Beach, California. (Maureen Sullivan/Getty Images / Getty Images)
Already this year, store closures in the U.S. outnumber openings, something not seen in 2023 or 2022, according to CRE Daily.
This comes after 2023 saw more than 4,000 stores announce closure plans, two times higher than the prior year, according to analysis by the Daily on Retail, an investor-oriented consumer research platform, cited by the National Retail Federation.
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