DELAWARE, Ohio — Discount furniture and appliance retailer American Freight has begun closing its stores across the United States following a Chapter 11 bankruptcy filing by its parent company, Franchise Group, Inc. (FRG). The announcement, made on November 3, comes after months of financial losses attributed to FRG’s owner, B. Riley Financial.
Founded in Lima, Ohio, in 1994, American Freight grew to operate approximately 370 stores in 40 states, offering customers discounted furniture, appliances, and mattresses. In recent years, the company expanded significantly, acquiring Sears Hometown and Outlet Stores in 2019. Franchise Group purchased American Freight in 2020 for $450 million.
FRG stated that American Freight struggled to overcome “sustained inflation and macroeconomic challenges facing the durable goods sector,” ultimately leading to the decision to shut down the chain.
Store closing sales began on November 5, with liquidation efforts underway. It remains unclear when each individual location will permanently close.
Other subsidiaries of FRG will remain operational during the bankruptcy proceedings, as the company works through a restructuring support agreement with a private equity firm and lenders to stabilize its operations.
For nearly three decades, American Freight served communities with affordable home furnishings, becoming a go-to destination for budget-conscious shoppers. The closure marks the end of a significant chapter for a retailer that started as a small business in Ohio and grew into a nationwide chain.
Shoppers are encouraged to take advantage of closing sales before stores shut their doors for good.