Following bankruptcy, locally-based chain shuttering all 370 stores, 4 in Central Ohio, citing ‘inflation’
“Everything is on sale and must be sold,” this company said in a statement.
A locally-based chain known for affordable, high-quality furniture, mattresses, and appliances, has not only filed for Chapter 11 bankruptcy under its parent company, called Franchise Group Inc., but they’ve began to shutter all 370 of their locations, including four here in the Columbus region.
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.
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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.
The following American Freight stores are closing in Columbus, and huge liquidation sales will be held.
- 5055 E. Main St., Columbus
- 900 Morse Road, Columbus
- 2885 Gender Road, Reynoldsburg
- 1141 S. Columbus Pike, Delaware
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