ORLANDO, Fla. — Franchise Group, Inc., owners of American Freight and Buddy’s Home Furnishings, has signed an agreement to acquire FFO Home a furniture retailer with 31 stores in Arkansas, Indiana, Kentucky, Missouri and Oklahoma, subject to a Chapter 11 bankruptcy process.
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,” said 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,” said 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.”