close
close
awsum

American Freight will close 15 stores in Michigan

Neon
American Freight will close 15 stores in Michigan

Discount retailer American Freight is preparing to close all of its 328 locations nationwide, including 15 in Michigan, as part of its Chapter 11 bankruptcy proceedings.

Its parent company, Franchise Group Inc., announced the closures Wednesday as part of its bankruptcy filing but said its other holdings, including The Vitamin Shoppe and Buddy’s Home Furnishings, would continue operating.

Franchise Group, headquartered in Delaware, Ohio, said: American Freight closure Because of “persistent inflation and macroeconomic challenges facing the major durable goods sector,” a news release announcing the application said.

American Transportation will hold off-business sales at stores in 41 states managed by Hilco Consumer-Retail, a company that handles liquidations.

“Our goal is to deliver exceptional value to our customers during this full-chain closing sale,” said Ian Fredericks, CEO of Hilco Consumer-Retail. he said in a statement. “Everything is on sale and needs to be sold.”

Where does American Freight have Michigan stores?

The company said it has two stores in the Lansing area, two in Livonia and two in Portage. Other Michigan stores are located in:

  • grand rapids
  • Ann Arbor
  • Battle Creek
  • Warren
  • Monroe
  • Muskegon
  • Saginaw
  • Flint
  • Taylor

American Freight company owner paid bonus ahead of bankruptcy

Unnamed individuals inside the Franchise Group received $5.75 million in retention bonuses to stay with the company through the bankruptcy process. according to court documents Obtained by USA TODAY on Thursday. Some other employees who were not considered insiders were paid $2.16 million in bonuses that could be refunded if they did not proceed into bankruptcy.

The payments were made before the bankruptcy filing, documents show. The move made the payments unreviewable to creditors and federal financial watchdogs. According to Bloomberg.

The financial news outlet said such bonuses are common during the bankruptcy process to ensure continuity and help creditors recover more money.

Franchise Group Inc. He did not immediately respond to a request for comment Thursday.

America Cargo Locations

Related Posts