1851

The parent company of five franchise brands, including&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-the-vitamin-shoppes-franchise-costs-fees-profit-and-data-2722969#stories">Vitamin Shoppe</a> and&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-pet-supplies-plus-franchise-costs-fees-profit-and-data-2721654#stories">Pet Supplies Plus</a>, has filed for bankruptcy.&nbsp;<a href="https://franchisegrp.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-group-files-for-bankruptcy-amid-debt-and-market-instability-2727837" target="_blank" rel="nofollow">Franchise Group</a>, which says it “help[s] catapult franchise brands forward,” was taken private about a year ago with a $2.8 billion acquisition. According to&nbsp;<a href="https://www.bnnbloomberg.ca/investing/2024/11/03/b-riley-backed-franchise-group-files-for-bankruptcy-protection/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-group-files-for-bankruptcy-amid-debt-and-market-instability-2727837" target="_blank" rel="nofollow">Bloomberg</a>, it listed nearly $2 billion in debt in its Chapter 11 court filings.All of this comes amidst growing concerns regarding Franchise Group’s former CEO,&nbsp;<a href="https://www.linkedin.com/in/brian-kahn-4a5baa115/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-group-files-for-bankruptcy-amid-debt-and-market-instability-2727837" target="_blank" rel="nofollow">Brian Kahn</a>, and his alleged involvement in a&nbsp;<a href="https://finance.yahoo.com/news/chris-christie-joins-brian-kahn-164418302.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-group-files-for-bankruptcy-amid-debt-and-market-instability-2727837" target="_blank" rel="nofollow">collapsed hedge fund</a>.Franchise Group closed the first quarter with a 12% revenue decrease across all its brands — a clear indication of the instability that exists in the traditional retail market.“The company will still market its business in Chapter 11 to ensure its assets are sold for as much as possible,” Bloomberg reported. “As part of the restructuring, [Franchise Group] said it has decided to wind down discount retailer American Freight and will commence store closing sales on Nov. 5.”Vitamin Shoppe and Pet Supplies Plus will remain largely unaffected, at least for now.&nbsp;As private equity continues to play an important role in the franchise world, this sequence of events illustrates just how important strategic partnerships are for all involved. While&nbsp;<a href="https://brileyfin.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-group-files-for-bankruptcy-amid-debt-and-market-instability-2727837" target="_blank" rel="nofollow">B. Riley Financial</a> — which backs Franchise Group — intends to return to growth in the foreseeable future, the current dissolution of the investment — and the professional and financial stability of countless entrepreneurs and team members involved — demonstrates the value in carefully evaluating the investment opportunity, existing debt and market circumstances surrounding a potential acquisition.Read more about the company and its bankruptcy filing&nbsp;<a href="https://www.linkedin.com/news/story/vitamin-shoppe-owners-bankruptcy-7026602/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-group-files-for-bankruptcy-amid-debt-and-market-instability-2727837" target="_blank" rel="nofollow">here</a>.Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit<a href="https://www.1851growthclub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-group-files-for-bankruptcy-amid-debt-and-market-instability-2727837" target="_blank" rel="nofollow">&nbsp;www.1851growthclub.com</a> and start your journey.

Franchise Group Files for Bankruptcy Amid Debt and Market Instability

Franchise Group Files for Bankruptcy | Private Equity and Franchising

1851 Franchise

The parent company of Vitamin Shoppe, Pet Supplies Plus and other brands has filed for Chapter 11 bankruptcy, citing challenges with debt and the retail market.

franchise-group-files-for-bankruptcy-amid-debt-and-market-instability

Caring Transitions

Caring Transitions Celebrates the Opening of Its 400th Franchise Location

caring-transitions-celebrates-the-opening-of-its-400th-franchise-location

Mathnasium

The Steps To Becoming a Mathnasium Learning Centers Franchisee

the-steps-to-becoming-a-mathnasium-learning-centers-franchisee

Happy Joe’s Franchising

Happy Joe’s: A Proven, Resilient Business Model That Stands the Test of Time

happy-joes-a-proven-resilient-business-model-that-stands-the-test-of-time

Preservan

Preservan Franchisee Stephen Eppling Celebrates One Year of Growth and a Major Preservation Award in Athens, Georgia

preservan-franchisee-stephen-eppling-celebrates-one-year-of-growth-and-a-major-preservation-award-in-athens-georgia

Paris Baguette

Photo of person in Paris Baguette café passing cake over countertop

How Much Does It Cost To Open a Paris Baguette Café?

paris-baguette-franchise-cost-2025

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Dave’s Hot Chicken Sold to Roark Capital in $1 Billion Deal to Fuel Global Expansion

daves-hot-chicken-sold-to-roark-capital-in-1-billion-deal-to-fuel-global-expansion

AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers - 1851 Franchise

AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers

ai-unemployment-impact-white-collar-job-loss

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

paris-baguette-franchise-rockaway-new-jersey-vishal-junjea

Franchisee spotlight graphic with photo of Ed Holmes and Papa Murphy's logo

Thirty Years of Take ‘n’ Bake: Ed Holmes Reflects on a Lifetime With Papa Murphy’s

papa-murphys-franchise-ed-holmes-30-years

From Personal Care to Purpose-Driven Business: Why This Couple Is Bringing Griswold to Houston

from-personal-care-to-purpose-driven-business-why-this-couple-is-bringing-griswold-to-houston

Design with outline of three houses and people working on laptops within them

Top 10 Low-Cost Home-Based or Mobile Franchises for 2025

low-cost-home-based-mobile-franchises

Franchisee spotlight graphic with photo of Raj Pingili and Paris Baguette logo

How a Family Vacation Inspired Raj Pingili to Bring Paris Baguette to Towson, Maryland

how-a-family-vacation-inspired-raj-pingili-to-bring-paris-baguette-to-towson-maryland

Franchise Group Files for Bankruptcy Amid Debt and Market Instability

MORE STORIES LIKE THIS