American Freight to Close All Stores Nationwide as Bankruptcy Moves Forward and Liquidation Sales Begin

In the shifting landscape of retail sales, American Freight, a well-known Toledo, Ohio-based furniture and appliance retailer, has started the process of closing down its extensive store network that stretches across the nation. This move comes after its parent company, Franchise Group Inc., sought Chapter 11 bankruptcy protection due to accumulating losses and problematic financial maneuvers by its owner, B. Riley Financial.

With over 370 locations spread across 41 states, including California where 15 stores serve predominantly the southern sector, the retail chain’s exit will touch many communities and employees. American Freight’s downfall, reported by

KTLA

, is attributed to “sustained inflation and macroeconomic challenges” that have consistently eroded profitability.

St. Louis-area residents will witness the closure of three American Freight outlets at 639 Gravois Bluff Blvd. in Fenton, 9801 Page Ave. in Overland, and 55 Ludwig Drive in Fairview Heights, as indicated by a report from

KSDK

. Across Missouri and Illinois, a total of 24 stores are set to shut down.

Yet, while American Freight is being reduced to memories, its siblings under the Franchise Group umbrella, such as Pet Supplies Plus, The Vitamin Shoppe, and Buddy’s Home Furnishings, will continue to operate during the bankruptcy proceedings. As part of their corporate struggle, according to a statement obtained by

Fox2Now

, Franchise Group announced a restructuring support agreement with a private equity firm and other lenders designed to buoy the company through its financial tempest.

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