Franchise Group successfully completed its financial restructuring process and emerged from Chapter 11 as a streamlined company with a significantly deleveraged capital structure and enhanced liquidity.
The company’s plan of reorganization was confirmed by the U.S. Bankruptcy Court for the District of Delaware on June 2, 2025 with the support of its key stakeholders, including secured and unsecured creditors and key business partners.
Over the past seven months, the restructuring process has enabled Franchise Group to take significant steps to strengthen its core franchise-based businesses and position them for incremental investment, growth and, ultimately, long-term success. As an important step in this strategic transformation, the company has simplified its portfolio of brands, including winding down American Freight and selling The Vitamin Shoppe.
Following the transaction, both the Pet Supplies Plus (PSP) and Buddy’s Home Furnishings (Buddy’s) entities will be owned by the newly-created Fusion Parent. The company will be focused on growing and supporting both franchises that continue to deliver strong results and benefit from over 200 new stores of aggregate actionable backlog. Importantly, PSP, Buddy’s and their respective management teams will be able to fully dedicate their efforts to supporting their franchisees, vendors and customers.
With its emergence, PSP and Buddy’s will be led by a reconstituted board currently comprised of five directors with significant consumer, retail, franchising and financial leadership experience, including: Chris Rowland, CEO of Pet Supplies Plus; Chuck Rubin, CEO of West Marine and former CEO of Ulta Beauty; David Barr, board member for a number of consumer companies, including Dogtopia and Domino’s Pizza China; Susan Lintonsmith, COO of European Wax Center; and Tim Johnson, former CFO and CAO for Victoria’s Secret & Co.
Franchise Group was advised by Kirkland & Ellis and Young Conaway Stargatt & Taylor as legal counsel; AlixPartners as financial advisor; and Ducera Partners as investment banker. The ad hoc group of debtor-in-possession and first lien term lenders was advised by Paul Hastings as legal counsel and Lazard as investment banker.
