Franchise Group, Inc. to Acquire FFO Home
November 05 2020 - 9:00AM
Franchise Group, Inc. (NASDAQ: FRG) (“Franchise Group” or the
“Company”) today announced it has signed an agreement to acquire
FFO Home (“FFO”), a furniture retailer with 31 stores in Arkansas,
Indiana, Kentucky, Missouri and Oklahoma, subject to a process
under Chapter 11 of the United States Bankruptcy Code (the
“Transaction”).
As part of the agreement, FFO has filed voluntary
petitions for Chapter 11 relief in the United States District Court
for the District of Delaware. FFO will continue normal business
operations throughout the sale process until the Transaction
closes. In addition, Franchise Group is providing FFO with a
debtor-in-possession loan as part of its bankruptcy proceedings.
The Transaction is expected to close by the end of 2020 at which
time Franchise Group plans to merge and rebrand the FFO stores with
its American Freight business.
Brian Kahn, CEO of Franchise Group stated, “FFO
provides us a great opportunity to expand our store footprint and
growth at American Freight. We look forward to welcoming FFO
employees to our team and believe there will be a seamless
transition since FFO has a comparable operating philosophy,
customer base and culture as American Freight.”
“With the support of Franchise Group, we are asking
the court to approve the sale agreement,” said FFO Home CEO, Hank
Mullany. “The planned transaction places FFO with a partner that
has strong financial resources, that is dedicated to growth and
support of our people.”
About Franchise Group,
Inc.Franchise Group is an operator of franchised and
franchisable businesses that continually looks to grow its
portfolio of brands while utilizing its operating and capital
allocation philosophy to generate strong cash flow for its
shareholders. Franchise Group’s business lines include Liberty Tax
Service, Buddy’s Home Furnishings, American Freight and The Vitamin
Shoppe. On a combined basis, Franchise Group currently operates
over 4,000 locations predominantly located in the U.S. and Canada
that are either Company-run or operated pursuant to franchising
agreements.
About FFO HomeFFO offers a wide
selection of high-quality furniture, mattresses and home
accessories, with 31 stores in Arkansas, Indiana, Kentucky,
Missouri and Oklahoma.
Forward-Looking StatementsThis
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, without limitation,
projections, predictions, expectations, or beliefs about future
events or results and are not statements of historical fact,
including the Company’s expectations regarding its financial
condition, the completion of the acquisition of FFO Home or its
performance and the effects of the coronavirus (COVID-19) pandemic
on economic conditions and the industry in general, and the
financial position and operating results of the Company. Such
forward-looking statements are based on various assumptions as of
the time they are made, and are inherently subject to known and
unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements.
Forward-looking statements are often accompanied by words that
convey projected future events or outcomes such as “expect,”
“believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,”
“will,” “may,” “view,” “opportunity,” “potential,” or words of
similar meaning or other statements concerning opinions or judgment
of the Company or its management about future events. Although the
Company believes that its expectations with respect to
forward-looking statements are based upon reasonable assumptions
within the bounds of its existing knowledge of its business and
operations, there can be no assurance that actual results,
performance, or achievements of the Company will not differ
materially from any projected future results, performance or
achievements expressed or implied by such forward-looking
statements. Actual future results, performance or achievements may
differ materially from historical results or those anticipated
depending on a variety of factors, many of which are beyond the
control of the Company. We refer you to the “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” sections of the Company’s Transition Report
on Form 10-K/T for the transition period ended December 28, 2019,
and comparable sections of the Company’s Quarterly Reports on Form
10-Q and other filings, which have been filed with the SEC and are
available on the SEC’s website at www.sec.gov. All of the
forward-looking statements made in this press release are expressly
qualified by the cautionary statements contained or referred to
herein. The actual results or developments anticipated may not be
realized or, even if substantially realized, they may not have the
expected consequences to or effects on the Company or its business
or operations. Readers are cautioned not to rely on the
forward-looking statements contained in this press release.
Forward-looking statements speak only as of the date they are made
and the Company does not undertake any obligation to update, revise
or clarify these forward-looking statements, whether as a result of
new information, future events or otherwise.
INVESTOR RELATIONS
CONTACT:Andrew F. KaminskyEVP & Chief Administrative
OfficerFranchise Group, Inc.akaminsky@franchisegrp.com(914)
939-5161
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