Following bankruptcy and 370 store closures, locally-based retailer closing Central Ohio headquarters, cutting 62 jobs

Last month, a locally-based chain known for affordable, high-quality furniture, mattresses, and appliances not only filed for Chapter 11 bankruptcy, but announced they’d be shuttering all 370 stores (including 4 in Columbus), citing “inflation.”

Now, American Freight Group will also be closing its Delaware headquarters this February, located at 109 Innovation Ct.

According to a WARN notice filed in Ohio, American Freight will be cutting 62 jobs with the headquarters closing, citing poor financial performance.

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American Freight started in Lima, OH back in 1994, but they’re headquartered in Delaware, OH. In 2020, the chain “rebranded” after merging with Sears Outlet. But court documents filed in the U.S. Bankruptcy Court in Delaware indicate that despite this rebrand and refresh, all American Freight locations will permanently close.

Franchise Group Inc. also owns Buddy’s Home Furnishings, Pet Supplies Plus, and The Vitamin Shoppe, and they announced they’d be focusing on those businesses instead. As for American Freight, their decision came to “sustained inflation and macroeconomic challenges facing the large durable goods sector,” said the Franchise Group Inc.

According to court documents obtained by USA Today, unnamed insiders with Franchise Group Inc. received $75 million in retention bonuses to stay with the company through the bankruptcy process. USA Today reported that some other employees were paid $2.16 million in bonuses that could be returned if they don’t stay with the company through the bankruptcy process. Apparently, this is common to maintain continuity through the bankruptcy process to help creditors recover more money.

Along with the headquarters closing this February, the following American Freight stores are closing in Columbus, and huge liquidation sales (like $1,000 off of refrigerators and washers!) are being held now:

5055 E. Main St., Columbus
900 Morse Road, Columbus
2885 Gender Road, Reynoldsburg
1141 S. Columbus Pike, Delaware

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