Franchise Group Files for Chapter 11 Bankruptcy Amid Financial Struggles

The owner of Vitamin Shoppe and Pet Supplies Plus seeks to restructure $2 billion in debt through a debt-for-equity swap with lenders.

Franchise Group Inc., the parent company of Vitamin Shoppe and other retail brands, has filed for Chapter 11 bankruptcy in Delaware.
The company plans to close American Freight stores, while continuing operations at Pet Supplies Plus, The Vitamin Shoppe, and Buddy’s Home Furnishings.
Franchise Group owes nearly $2 billion and has reached a restructuring agreement with lenders to convert debt into equity.
Financial troubles were exacerbated by macroeconomic pressures, high debt levels, and a criminal investigation involving former CEO Brian Kahn.
B. Riley Financial, which backed Franchise Group's privatization, faces significant financial losses due to the bankruptcy.