Franchise Group, Inc. Completes the Acquisition of FFO Home
Franchise Group has completed the acquisition of FFO Home, a furniture and mattress retailer, rebranding over 30 stores in the Midwest to American Freight. This move aims to expand American Freight's market presence while preserving local jobs. The rebranded stores will offer a broader range of products, including appliances, and maintain operations during the conversion. Customers can expect affordable pricing and same-day delivery on in-stock items. A Grand Reopening is anticipated in Q1 2021.
- Expansion into new markets with over 30 rebranded stores.
- Enhanced product offerings including appliances.
- Retention of local jobs that would have been lost otherwise.
- Affordable pricing and same-day delivery for customers.
- None.
Over 30 FFO Home Stores to Rebrand to American Freight
One-Stop-Shop Home Retailer American Freight Expands its National Footprint while Saving Local Jobs
ORLANDO, Fla., Dec. 28, 2020 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (NASDAQ: FRG) (“Franchise Group” or the “Company”) today announced it has completed the acquisition of FFO Home (“FFO Home”), a regional retailer of furniture and mattresses. Starting immediately, over 30 FFO Home stores throughout the Midwest will be rebranded to American Freight Furniture, Mattress, Appliance. In addition, FFO Home customers will be automatically redirected to the American Freight website for online shopping. The converted stores will offer affordable prices, new product offerings, and financing solutions to help better serve consumers in each local market. Stores will remain open and operational as they undergo the conversion. A Grand Reopening event for the rebranded stores is scheduled for the first quarter of 2021.
“The FFO Home acquisition allows American Freight to accelerate its growth plans, including new market entries,” said Brian Kahn, CEO of Franchise Group, Inc. “It provides customers who used to shop at FFO Home with an enhanced customer experience, with additional products and payment options.”
As the stores rebrand, core American Freight product choices and services will be available immediately, most notably the addition of appliances. Consumers will also enjoy the availability of same-day-delivery on in-stock items, and American Freight will continue making quality items accessible to everyone with flexible payment options for online and in-store purchases.
“We are excited about the FFO Home acquisition,” said Will Powell, CEO and President of American Freight. “Our ability to use this acquisition to quickly enter many new markets where we do not currently have a presence, and preserve local jobs that might have otherwise been lost had FFO Home stores permanently closed, made this a win-win for American Freight and these communities we will now have the opportunity to serve.”
About American Freight
Since 1994, American Freight Furniture and Mattress has been helping customers save money on quality furniture and mattresses. In 2020, American Freight combined with Sears Outlet, a leading national discount retailer of home appliances, and FFO Home, a regional retailer of furniture and mattresses, to create a new American Freight. The enhanced American Freight leverages the strong legacies of the founding organization to deliver consumers a one-stop-shop for quality furniture, mattresses and appliances at everyday low prices in over 350 locations, in 40 states and Puerto Rico.
With over 5 million satisfied customers, American Freight continues to grow true to its founding principles: sell the best quality merchandise for less every day while delivering exceptional customer service. American Freight continues to deliver on its commitment of take it home today with same-day delivery available for all in-stock items, with payment plan options for every customer, including free layaway, no credit required and other credit options with low, easy payments. For more information, visit AmericanFreight.com.
About Franchise Group
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 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.
Forward-Looking Statements
This 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 performance of FFO Home, the success of American Freight’s strategic growth plans 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.
Franchise Group Investor Relations Contact:
Andrew F. Kaminsky
EVP & Chief Administrative Officer
Franchise Group, Inc.
akaminsky@franchisegrp.com
(914) 939-5161
American Freight Media Contact
Anna Jensen
Fishman Public Relations
ajensen@fishmanpr.com
(847) 945-1300
FAQ
What is the significance of Franchise Group's acquisition of FFO Home?
When will the FFO Home stores be rebranded to American Freight?
What new products will be available at the rebranded American Freight stores?
How does this acquisition affect FFO Home customers?
