DAYTON, Ohio (WDTN) – American Freight, a chain of furniture stores operating in dozens of states, is planning to permanently shutter all 328 locations amid struggles with “sustained inflation and macroeconomic challenges,” according to its parent company.
The locations are currently hosting store-closing sales managed by Hilco, a company that offers liquidation services.
The closing of all American Freight locations comes after its parent company, Franchise Group, Inc., filed for bankruptcy protection, according to documents filed in the U.S. Bankruptcy Court in Delaware.
“The debtors concluded that American Freight’s limited amount of profitable store locations could not support the rightsizing of its business through a plan of reorganization,” said David Orlofsky, chief restructuring officer for Franchise Group.
In a press release issued earlier this week, Franchise Group explained that American Freight had struggled in the “large durable goods sector.” Franchise Group further said that closing American Freight was be part of its strategy to prop up the company’s other brands — specifically, Pet Supplies Plus, The Vitamin Shoppe and Buddy’s Home Furnishings — for continued operation and longer-term success.
“Each of these businesses has a demonstrated value proposition and provides great products and services to customers, which they will continue to do seamlessly during this process,” said Andrew Laurence, president and CEO of Franchise Group.
American Freight has retail outlets in 41 states. A full list of locations can be found here.
Store closing sales began on Nov. 5, both online and in-store. Hilco has advertised up to 30% off furniture, appliances and other merchandise.
“Our goal is to deliver outstanding value to customers during this full chain closing sale,” Ian Fredericks, CEO of Hilco Consumer-Retail, said in a press release. “Everything is on sale and must be sold, and we recommend shopping early for the best selection.”