American Freight's financial struggles began to surface in 2022, with the company filing for bankruptcy in February of that year.
The company's bankruptcy filing revealed a staggering $1.4 billion in debt, with liabilities exceeding its assets by a significant margin.
American Freight's struggles were likely exacerbated by the COVID-19 pandemic, which disrupted supply chains and led to increased costs for the company.
As a result, American Freight was forced to shut down operations and liquidate its assets to satisfy its creditors.
Recommended read: Phoenix Coyotes Bankruptcy and Sale
American Freight Bankruptcy
American Freight is closing all 365 stores in 40 states, a large brand with a significant presence nationwide.
The company's parent, Franchise Group Inc., has filed for Chapter 11 bankruptcy, leading to the store closures.
Store closing sales will begin on November 5, offering significant discounts of up to 30% on a wide range of products, including living room sets, bedroom furniture, and appliances.
The sales will include scratch and dent and new in-box appliances, and new inventory is expected to arrive and move quickly.
Over 4,000 stores in the U.S. have announced closure plans this year, more than twice the number from the prior year, according to analysis by the Daily on Retail.
This marks a significant trend, as store closures have outnumbered openings in the U.S. already this year, something not seen in 2023 or 2022.
Explore further: U. S. Steel Košice, S.r.o.
Business Woes
American Freight is closing all 328 of its stores nationwide as part of its parent company's Chapter 11 bankruptcy proceedings.
The store closures are a result of Franchise Group Inc.'s restructuring efforts, which will impact American Freight's operations.
American Freight is offering significant discounts on its entire inventory, up to 30%, in an effort to sell off its remaining stock.
This sale includes a wide range of products, from living room sets to scratch and dent appliances.
New inventory is arriving at the stores, but it's expected to move quickly.
Store closures in the US are on the rise, with more than 4,000 stores announcing closure plans this year alone.
This is a significant increase from the prior year, when there were fewer store closures compared to openings.
Recommended read: Inventory Control
Featured Images: pexels.com
