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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.

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Children's Lighthouse

Children’s Lighthouse Ramps Up Growth in First Half of 2025 With Strategic Expansions, Franchise Signings, and New Headquarters

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Right at Home

Right at Home® Named a 2025 Top Franchise Brand for Multi-Unit Owners by Entrepreneur Magazine

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Dog Training Elite

Dog Training Elite -Tips-to-Ease-Dog Anxiety-for-4th of July- July-2025

Dog Training Elite Shares Tips To Ease Dog Anxiety for 4th of July

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Melting Pot

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Lexington Herald Leader: This Restaurant Chain Eyes a Return to Lexington After 10 Years

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Keke's Breakfast Cafe

Keke's Breakfast Cafe - John and Kimberly Ehrhard - 1851 Franchise

Empowering Leadership, One Pancake at a Time: How John and Kimberly Ehrhard Are Building a Franchise Legacy with Keke’s Breakfast Cafe

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Franchise Group Files for Bankruptcy Amid Debt and Market Instability

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