DAYTON, Ohio ( WDTN ) – American Freight, a chain of furniture stores operating in dozens of states, is planning to permanently shutter all 328 locations amid struggles with “sustained inflation and macroeconomic challenges,” according to its parent company.
The locations are currently hosting store-closing sales managed by Hilco, a company which offers liquidation services.
The closing of all American Freight locations comes after its parent company, Franchise Group, Inc., filed for bankruptcy protection, according to documents filed in the U.S. Bankruptcy Court in Delaware.
“The debtors concluded that American Freight’s limited amount of profitable store locations could not support the rightsizing of its business through a plan of reorganization,” said David Orlofsky, chief restructuring officer for Franchise Group.
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In a press release issued earlier this week, Franchise Group explained that American Freight had struggled in the “large durable goods sector.” Franchise Group further said that closing American Freight was be part of its strategy to prop up the company’s other brands — specifically, Pet Supplies Plus, The Vitamin Shoppe and Buddy’s Home Furnishings — for continued operation and longer-term success.