Franchise Group Inc. files for bankruptcy

Franchise Group Inc. operates the speciality retail groups Pet Supplies Plus, The Vitamin Shoppe and Buddy's Home Furnishings. The American company has now announced that it has concluded a Restructuring Support Agreement (RSA) with the holders of around 80 per cent of its senior debt. The aim is to find a comprehensive solution to strengthen the company's capital structure and secure the growth of its speciality retail brands.

The RSA provides for the proposed conversion of the senior debt into 100 percent equity of the reorganised company, significantly reducing the company's debt and increasing its liquidity. "The company remains strong and well positioned to succeed today and in the future," said Chris Rowland, CEO of Pet Supplies Plus. He emphasises: "Our parent company's filing is in no way a reflection of the financial strength of our individual brand or our growth prospects." Pet Supplies Plus is finishing 2024 with a solid performance, including opening 35 new locations and an equal number of new franchise agreements.