( MENAFN - PR Newswire) Leading Brands Pet Supplies Plus, The vitamin Shoppe, and Buddy's Home Furnishings to Serve Customers as Usual at Locations Nationwide and online as Part of Strengthened Go-Forward Enterprise Commences Voluntary Chapter 11 Cases to Implement Agreed-Upon Restructuring Plan $250 Million of DIP Financing Committed to Support Ordinary Course Operations Across Businesses American Freight to Wind Down Operations and Commence Store Closing Sales on November 5 DELAWARE, Ohio, Nov. 3, 2024 /PRNewswire/ -- Franchise Group, Inc. ("FRG" or the "Company") today announced that it has entered into a restructuring support agreement ("RSA") with holders of approximately 80% of its first lien debt on a comprehensive solution to strengthen FRG's capital structure and best position its leading brands – Pet Supplies Plus, The Vitamin Shoppe, and Buddy's Home Furnishings – for continued sustainable growth.
The RSA contemplates the proposed equitization of the first lien debt into 100% of the equity in the reorganized enterprise, which would substantially reduce the Company's debt, enhance liquidity, and strengthen the enterprise for the benefit of Pet Supplies Plus, The Vitamin Shoppe, and Buddy's Home Furnishings and their stakeholders. To implement the agreed-upon restructuring, FRG, its operating businesses, and the Company's other affiliates commenced voluntary Chapter 11 proceedings in the U.S.
Bankruptcy Court for the District of Delaware. Franchised locations of .