Financial News

The Vitamin Shoppe Parent Company Files for Chapter 11

Franchise Group Inc. acquired the wellness retailer in 2019.

Franchise Group, Inc. (FRG)—parent to wellness purveyor The Vitamin Shoppe and other specialty retailers—filed for Chapter 11 proceedings in the US Bankruptcy Court for the District of Delaware.

The company announced it has entered into a restructuring support agreement (RSA) with holders of approximately 80% of its first lien debt on a “comprehensive solution” to strengthen FRG’s capital structure and best position its lead brand, which include The Vitamin Shoppe, Pet Supplies Plus,  Buddy’s Home Furnishings, for continued sustainable growth.

“Today’s announcement to de-lever our balance sheet is a pivotal step forward in enabling our market-leading businesses Pet Supplies Plus, The Vitamin Shoppe and Buddy’s Home Furnishings to realize their full potential,” said Andrew Laurence, FRG’s president and CEO “Each of these businesses has a demonstrated value proposition and provides great products and services to customers, which they will continue to do seamlessly during this process. Strengthening FRG’s balance sheet will allow us to enhance our support for these businesses as they advance their growth trajectories.”

As part of this strategy, FRG will shuttered American Freight, its discount furniture and appliance retail operation. American Freight store closings will start as soon as November 5.

Franchise Group International was formed in June 2019. It acquired The Vitamin Shoppe later that year for $208 million.

The Vitamin Shoppe’s Operations

Based in Secaucus, NJ, The Vitamin Shoppe offers an assortment of nutritional solutions, including vitamins, minerals, sports nutrition, specialty supplements, herbs, homeopathic remedies, and green living products. There are approximately 700 company-operated and franchise retail stores under The Vitamin Shoppe and Super Supplements banners. It also operates a website. The Vitamin Shoppe carries products from approximately 700 national brands and has made several launches within beauty as the lines between personal care and health wellness blurred. For example, Iin September, it announced that it would expand its telehealth service to include testosterone replacement therapy (TRT). 

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