Franchise Group, Inc. is an American privately-held holding company that acquires and manages mainly franchise companies. It owns brands in various retail industries including American Freight, Buddy's Home Furnishings, The Vitamin Shoppe, and Pet Supplies Plus. On August 21, 2023, it was announced that a consortium of investors had acquired Franchise Group for $2.6 billion.

History

Founded in 2019 through the merger of Liberty Tax and Buddy's Home Furnishings, it originally operated under the name Liberty Tax. However, when it was renamed Franchise Group, the company retained Liberty Tax and Buddy's Home Furnishings as its subsidiaries. One year after purchasing The Vitamin Shoppe and Sears Outlet, the company purchased American Freight for $450 million in cash in 2020.

• then Sears Outlet merged into American Freight. On November 5, 2020, Franchise Group announced that it would acquire Fort Smith, Arkansas-based regional furniture retailer FFO Home, which filed for Chapter 11 bankruptcy protection on the same day. The acquisition was completed on December 29. In the year it sold Liberty Tax to NextPoint Financial for $249 million, Franchise Group made numerous acquisitions in 2021. Around that time, it purchased Pet Supplies Plus in a deal valued at $700 million, Sylvan Learning for $81 million, and Badcock Home Furniture for $580 million. In August, a group of investors bought Franchise Group for US$2.6 billion. In November 2023, Kahn was identified by Bloomberg as one of two co-conspirators in a securities fraud case, following the guilty plea of John Hughes, co-founder of Prophecy Asset Management In December 2023, Conn's acquired Badcock Home Furniture &more from the Franchise Group. Conn's ended up filing for Chapter 11 bankruptcy in July 2024, and liquidated all of its namesake and Badcock stores by October 2024. In February 2024, Unleashed Brands, owner of The Little Gym and Urban Air Trampoline Park, acquired Sylvan Learning from Franchise Group for an undisclosed amount. On November 2, 2024, Franchise Group announced that they were preparing to file for Chapter 11 bankruptcy after months of losses and turmoil caused by its owner, B. Riley Financial. HPS Investment Parters, a private equity firm, amongst other lenders, will take over the company once the restructuring is completed. On November 3, 2024, Franchise Group and all of its affiliated subsidiaries filed for Chapter 11 bankruptcy protection in Delaware. The company plans to keep its Pet Supplies Plus, The Vitamin Shoppe, and Buddy's Home Furnishings stores open during the procedure, while it plans to liquidate American Freight. American Freight suffered major losses due to high rising costs and macroeconomic challenges. Liquidation sales are set to begin on November 5, with stores to close by the end of the year.

Subsidiaries

Current subsidiaries

Former subsidiaries