Franchise Group, Inc. announced it has signed an agreement to acquire FFO Home, a furniture retailer with 31 stores in Arkansas, Indiana, Kentucky, Missouri and Oklahoma, subject to a process under Chapter 11 of the United States Bankruptcy Code.
As part of the agreement, FFO has filed voluntary petitions for Chapter 11 relief in the United States District Court for the District of Delaware. FFO will continue normal business operations throughout the sale process until the Transaction closes. In addition, Franchise Group is providing FFO with a debtor-in-possession loan as part of its bankruptcy proceedings. The Transaction is expected to close by the end of 2020 at which time Franchise Group plans to merge and rebrand the FFO stores with its American Freight business.
“FFO provides us a great opportunity to expand our store footprint and growth at American Freight,” says Brian Kahn, CEO of Franchise Group. “We look forward to welcoming FFO employees to our team and believe there will be a seamless transition since FFO has a comparable operating philosophy, customer base and culture as American Freight.”
“With the support of Franchise Group, we are asking the court to approve the sale agreement,” says FFO Home CEO, Hank Mullany. “The planned transaction places FFO with a partner that has strong financial resources, that is dedicated to growth and support of our people.”
Franchise Group is an operator of franchised and franchisable businesses that continually looks to grow its portfolio of brands while utilizing its operating and capital allocation philosophy to generate strong cash flow for its shareholders. Franchise Group’s business lines include Liberty Tax Service, Buddy’s Home Furnishings, American Freight and The Vitamin Shoppe. On a combined basis, Franchise Group currently operates over 4,000 locations predominantly located in the U.S. and Canada that are either Company-run or operated pursuant to franchising agreements.
FFO offers a wide selection of high-quality furniture, mattresses and home accessories, with 31 stores in Arkansas, Indiana, Kentucky, Missouri and Oklahoma.