Court approves sale of 28 American Freight stores

A U.S. bankruptcy court has approved the sale of 28 American Freight stores, part of Franchise Group's Chapter 11 restructuring plan. The Delaware-based group, which owns Buddy’s Home Furnishings and other holdings, filed for bankruptcy on November 3, 2024. The company has struggled due to inflation and economic challenges in the durable goods sector. Judge Laurie Selber Silverstein granted approval for the 28 freight stores sale but withheld decisions on leases in Florida and Tennessee, citing potential state law issues. These cases remain under review pending further clarification of applicable laws. Under an asset purchase agreement (APA) filed on December 13, 2024, AF Newco I LLC will acquire 31 leases, including 30 store locations and one distribution center, for $1.12 million-plus payment of lease cure