Franchise Group announces closure of all American Freight stores amid bankruptcy filing

Franchise Group, Inc. has announced the closure of all American Freight stores as part of its Chapter 11 bankruptcy filing. The company operates about 341 locations across 41 states, with 329 being company-owned. Other brands under Franchise Group will remain open.

The decision to close American Freight comes amid ongoing struggles due to inflation and economic challenges. Franchise Group aims to reduce debt and improve liquidity while focusing on its other brands, which it believes have stronger prospects.

Many American Freight employees will be laid off, and some may experience delays in receiving their final paychecks. The company plans to hold going-out-of-business sales while warning that its payroll system may struggle to comply with state fast pay laws.