Bankrupt Furniture Chain Closing All Stores Including 15 in Michigan

As its parent company faces bankruptcy woes, a national furniture chain with 15 Michigan locations is preparing to shutter all of its stores.

Franchise Group Inc. is the corporate owner behind American Freight, which operates more than 300 locations nationwide including 15 stores here in Michigan. The chain currently operates two stores in the Flint area and several locations in West Michigan and Metro Detroit.

As the Ohio-based retailer prepares to shutter all stores, customers can expect to save about 30% on home furnishings, mattresses, and many major appliances.

No closing date has been announced for the chain's 15 Michigan locatinos.

American Freight's Parent Company Files Chapter 11 Bankruptcy

Franchise Group Inc. is the parent company behind several other reatil chains including the Vitamin Shoppe, Buddy's Home Furnishings, and Pet Supplies Plus.

• The Vitamin Shoppe operates over 700 stores nationwide, 17 in Michigan.
• Pet Supplies Plus operates over 700 stores in 36 states. There are several Michigan locations including several in the Flint area, Lansing, Grand Rapids, Traverse City, and Metro Detroit.
• There are no Buddy's Home Furnishings stores in Michigan.

What's Next for These Retail Chains?

Franchise Group Inc. plans to shutter and liquidate all American Freight stores, after an earlier attempt to sell those stores.

The company plans to either sell all its remaining assets or hand its equity to its first-lien term lenders. The privately owned company owes. $1.98 billion in funded debt and $1.06 million in unsecured claims to creditors.

The fate of The Vitamin Shoppe, Buddy's Home Furnishings, and Pet Supplies Plus stores is yet to be determined.