“[The] announcement to de-lever our balance sheet is a pivotal step forward in enabling our market-leading businesses Pet Supplies Plus, The Vitamin Shoppe and Buddy’s Home Furnishings to realize their full potential,” said Andrew Laurence, president and CEO at Franchise Group (FRG).
“Strengthening FRG’s balance sheet will allow us to enhance our support for these businesses as they advance their growth trajectories.”
According to a press release issued on Nov. 3, these three operating companies will continue to serve customers as usual at locations nationwide and online. Home furnishing retailer American Freight, however, will wind down operations and begin store closing sales on Nov. 5.
The Vitamin Shoppe operates nearly 700 locations, most of them company owned. Franchised operations are not involved in the proceedings. All stores and vitaminshoppe.com are fully opened for business, a spokesperson for the supplement retailer said.
“The Vitamin Shoppe’s business is healthy and strong, with sustainable cash flow and dynamic growth initiatives that remain in motion,” the spokesperson added. “The debt obligations of our parent company necessitated this strategic financial step, which is not reflective of The Vitamin Shoppe’s own financial stability, ongoing commitment to serving our communities, and promising roadmap for future growth.”
The restructuring plan—which is expected to substantially reduce the Franchise Group’s debt and enhance liquidity—and an explanatory disclosure statement will be filed with the U.S. Bankruptcy Court for the District of Delaware in the coming days.
Court filings and other information regarding the Chapter 11 proceedings can be found at https://cases.ra.kroll.com/FRG.
