Ohio-based furniture store to lay off employees at its Delaware headquarters
DELAWARE, Ohio (WCMH) – A furniture retailer closing all of its stores after its parent company filed for bankruptcy plans to lay off corporate employees at its Delaware, Ohio, headquarters.
American Freight announced on Nov. 6 that its 328 locations across 41 states will permanently shut down. The news came after its parent company, Franchise Group, filed for Chapter 11 bankruptcy on Nov. 3. The company cited “sustained inflation and macroeconomic challenges” as reasons for the filing.
According to a WARN notice filed with the state last week, the retailer plans to close its headquarters, located at 109 Innovation Court in Delaware, and lay off the 62 employees working there.
The company cited “poor financial performance” as the reason for the layoffs, which are set to occur on Feb. 3. Among the positions affected are asset protection specialist, financial analyst, paralegal, and facilities manager.
A news release issued by Franchise Group said that closing American Freight is part of a strategy to set up other brands in its portfolio — specifically Pet Supplies Plus, Vitamin Shoppe and Buddy’s Home Furnishings — for long-term success.
The brand is currently holding “going out of business” sales at its locations across the country, according to posts on its Facebook page. The brand has 26 locations across Ohio, including four in central Ohio — all of which will be permanently closing.
Central Ohio locations include:
- 5055 E. Main St., Columbus
- 900 Morse Road, Columbus
- 2885 Gender Road, Reynoldsburg
- 1141 S. Columbus Pike, Delaware
American Freight was established in Lima, Ohio, in 1994 and offers “affordable, high-quality furniture, mattresses and appliances,” according to its website.
Franchise Group acquired Sears Hometown and Outlet Stores in 2020, merging it with the American Freight brand and converting it to that name. While Franchise Group acquired Sears Hometown and Outlet Stores, Sears is owned by a separate company and still has a handful of remaining locations in the country, none of which are in Ohio.