American Freight is closing all its stores due to parent company bankruptcy

American Freight furniture store set to close All 328 locations in dozens of states as part of parent company Franchise Group Inc.’s Chapter 11 bankruptcy proceedings.

Franchise Group, headquartered in Delaware, Ohio, announced the closures Wednesday as part of its bankruptcy filing but said its other holdings, including The Vitamin Shoppe and Buddy’s Home Furnishings, will continue operating.

Franchise Group Inc. he 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 Freight will hold off-business sales at stores in 41 states managed by Hilco Consumer-Retail, a company handling the 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.”

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

(This story has been updated with new information)

This article first appeared on USA TODAY: American Freight to close all 328 stores: ‘Everything is on sale’