Are American Freight stores in Kentucky closing? Here's how to score discounts on furniture

Are American Freight stores in Kentucky closing? Here’s how to score discounts on furniture

Posted by author November 13, 2024 Shopping

The closures are part of Chapter 11 bankruptcy proceedings by parent company Franchise Group Inc.
Franchise Group Inc. cited “sustained inflation and macroeconomic challenges” as reasons for the closures.
Going-out-of-business sales will be managed by Hilco Consumer-Retail.

American Freight, a furniture store with locations in more than a dozen states, is closing all of its 328 stores including 11 in Kentucky.

Parent company Franchise Group, based in Delaware, Ohio, announced the closures Wednesday as a part of Chapter 11 bankruptcy proceedings.

Why are American Freight stores closing?

Franchise Group Inc., the parent company of the furniture store, said that they are closing American Freight due to, “sustained inflation and macroeconomic challenges facing the large durable goods sector,” in a news release announcing the filing.

Will American Freight have a closing sale?

Yes, American Freight will hold going-out-of-business sales at its stores across 41 states, managed by Hilco Consumer-Retail − a company that conducts liquidations.

“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 statement. “Everything is on sale and must be sold.”

Are Vitamin Shoppe stores closing?

Franchise Group said that its other holdings, including The Vitamin Shoppe and Buddy’s Home Furnishings, will remain in business.

American Freight corporate owner paid bonuses ahead of bankruptcy

Unnamed insiders with Franchise Group got $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 not considered insiders were paid $2.16 million in bonuses that could be returned if they do not stay through the bankruptcy.

The payments were made ahead of the bankruptcy filing, according to the documents. The move made the payments unreviewable to creditors and federal financial watchdogs, according to Bloomberg.

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

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