Michigan Based Pet Supply Giant’s Parent Company Files Bankruptcy

Distressed retailers have struggled to stay afloat in 2024 and now the parent company of several diverse retail chains has filed for Chapter 11 bankruptcy.

Franchise Group Inc. is the corporate owner of three major retail chains, including a pet supply giant based in Livonia, Michigan.

Major Retailers Face Financial Struggles in 2024

Several major retail chains have been frantically shuttering locations in 2024. The list includes Rite Aid, which closed 100% of its Michigan locations prior to suddenly emerging from bankruptcy in September.

Earlier this summer, LL Flooring, formerly known as Lumber Liquidators, announced that it was closing 94 locations in more than 30 states, including Michigan. The future of Big Lots is also tenuous as the discount retailer plans to shutter 35 to 40 stores by the end of this year, including 11 locations in Michigan. Ollie's Bargain Outlets is reported to be swooping in to purchase some of Big Lots' shuttered locations.

And it's not just retail stores. Chain restaurants like TGI Fridays, Denny's, and Red Lobster have also faced financial woes that have closed restaurants in Michigan and beyond.

Franchise Group Inc. Files for Chapter 11

You may not know Franchise Group Inc. by name, but you're certainly familiar with some of the retail chains it owns.

Franchise Group Inc. is the parent company behind The Vitamin Shoppe, Buddy's Home Furnishings, American Freight, and Michigan-based pet supply giant Pet Supplies Plus.

While Buddy's Home Furnishings operates over 300 stores in the south and northwest, they currently have no presence in Michigan. The Vitamin Shoppe operates over 700 stores nationwide with several Michigan locations including Fenton, Brighton, Lansing, and several Metro Detroit locations. There are more than 350 American Freight stores in the US, including 14 in Michigan.

Pet Supplies Plus operates numerous stores throughout Michigan, including several in the Flint, Detroit, Lansing, Grand Rapids, and Traverse City areas.

What's Next for These Retail Chains?

According to The Street, Franchise Group Inc. plans to either sell all its assets or hand its equity to its first-lien-term lenders. The privately owned company owes $1.98 billion in funded debt and $1.06 million in unsecured claims to creditors.

The bankruptcy plan also calls for the company to liquidate the American Freight arm of the business after a recent failed attempt to sell those stores.

The fate of The Vitamin Shoppe, Buddy's Home Furnishings, and Pet Supplies Plus is yet to be determined.