American Freight

American Freight originated in Lima, Ohio, in 1994, when Steve Belford founded the business as American Freight Furniture & Mattress. The company developed as a discount furniture and mattress retailer, using physical stores to sell value-oriented home goods. Its retail proposition centered on lower prices and a broad assortment of durable household products rather than on proprietary manufacturing or a premium brand identity. By 2014, the chain had grown to 95 stores in 18 states. In October of that year, an affiliate of The Jordan Company acquired the company. This ownership change marked a transition from its founder-era development to private-equity ownership, while the business continued to operate as a discount home-furnishings chain. On February 14, 2020, Franchise Group acquired American Freight for $450 million. Franchise Group then combined American Freight with the former Sears Outlet stores. The enlarged operation traded under the American Freight name and used the expanded American Freight Furniture, Mattress, Appliance identity. The combination broadened the chain's product coverage and connected the American Freight brand with the outlet-store network formerly associated with Sears Outlet. The business subsequently faced the financial pressures affecting Franchise Group and its affiliated companies. On November 2, 2024, Franchise Group said it was preparing to file for Chapter 11, citing losses and turmoil associated with its owner, B. Riley Financial, along with rising costs and challenging macroeconomic conditions. The company and its affiliated subsidiaries filed for bankruptcy protection in Delaware on November 3. American Freight was not included in the stated plan to keep the group's brands open during the proceedings. Liquidation sales began on November 5, and the available account stated that stores were expected to close by the end of 2024. The bankruptcy process did not necessarily end the brand's commercial prospects. In January 2025, a bankruptcy judge approved the sale of as many as 28 American Freight stores and one distribution center to AF Newco I LLC. Two more locations were initially part of the proposed sale but were withheld because of possible state-law complications. AF Newco I LLC planned to reopen the 28 acquired stores and the distribution center later in 2025. The available source does not establish whether all planned reopenings occurred, so the brand's current status cannot be stated conclusively. Historically, American Freight has been defined by discount home-furnishings retail, with furniture, mattresses, and appliances as its principal categories. Its ownership and footprint changed substantially through the 2014 private-equity acquisition, the 2020 Franchise Group transaction, and the subsequent bankruptcy and asset-sale process.

1. 2025Sale of selected stores approved

   A bankruptcy judge approved the sale of up to 28 stores and one distribution center to AF Newco I LLC, subject to the limitations described in the source account.

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2. 2024Chapter 11 filing and liquidation

   Franchise Group and its affiliates filed for Chapter 11 in November. American Freight was excluded from the continuation plan, and liquidation sales began on November 5.

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3. 2020Franchise Group acquisition and Sears Outlet combination

   Franchise Group acquired American Freight for $450 million on February 14 and combined it with former Sears Outlet stores under the American Freight brand.

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4. 2014The chain reaches 95 stores

   By 2014, American Freight was operating 95 stores across 18 states.

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5. 2014Acquisition by a Jordan Company affiliate

   An affiliate of The Jordan Company acquired American Freight in October 2014.

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6. 1994American Freight is founded in Lima, Ohio

   Steve Belford founded the business as American Freight Furniture & Mattress, establishing its initial focus on discount furniture and mattresses.

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Discount and outlet-oriented retail for furniture, mattresses, and household appliances.

• FurnitureHome furnishings1994

  Furniture was the foundation of American Freight's retail identity from its establishment as American Freight Furniture & Mattress. The category was sold through a discount, store-based model aimed at consumers seeking lower-priced furnishings for residential spaces. The available source material does not provide a reliable itemized catalogue or identify specific proprietary furniture collections.

• MattressesBedding1994

  Mattresses were another core category associated with the original American Freight business and remained part of the expanded American Freight Furniture, Mattress, Appliance identity. The retailer's value proposition emphasized discount pricing and outlet-style availability. Specific mattress manufacturers, models, and current availability are not established by the supplied sources.

• Household appliancesAppliance retail2020

  Household appliances became a prominent part of the brand's proposition, particularly after the combination with former Sears Outlet stores in 2020. Appliance retail broadened American Freight beyond furniture and bedding and supported its outlet-oriented positioning. The available material does not identify specific appliance brands, product families, or models.

• 2025Sale of selected American Freight assets to AF Newco I LLCM&A

  The bankruptcy process created an opportunity to sell selected American Freight locations rather than liquidate every store permanently.

  What changed. A United States bankruptcy judge approved the sale of up to 28 stores and one distribution center to AF Newco I LLC. Two additional locations were withheld because of possible state-law issues.

  Aftermath. AF Newco I LLC planned to reopen the acquired locations later in 2025, but the available source does not confirm the completion or final scope of those reopenings.

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• 2024Liquidation following exclusion from the bankruptcy continuation planStrategy

  Franchise Group and its affiliates entered Chapter 11 proceedings amid losses, higher costs, macroeconomic pressure, and turmoil involving B. Riley Financial.

  What changed. American Freight was omitted from the plan to keep the group's brands open, and liquidation sales began on November 5, 2024.

  Aftermath. Stores were expected to close by the end of 2024, although selected stores and a distribution center were later approved for sale to AF Newco I LLC.

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• 2020Franchise Group acquires and combines American Freight with Sears OutletM&A

  Franchise Group acquired American Freight as part of an effort that also brought the former Sears Outlet stores into the same operating brand.

  What changed. The transaction closed on February 14, 2020, for $450 million, after which the businesses were combined under the American Freight name and the expanded Furniture, Mattress, Appliance identity.

  Aftermath. The combination expanded the brand's retail platform and product scope, but the later financial distress of Franchise Group led to bankruptcy proceedings and liquidation activity in 2024.

  Acquisition price. $450 million (February 14, 2020)

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• 2025Court approves sale of American Freight stores and distribution center

  In January 2025, a United States bankruptcy judge approved the sale of up to 28 American Freight stores and one distribution center to AF Newco I LLC. The buyer planned to reopen the locations later in 2025.

  BankruptcyM&A
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• 2024Franchise Group prepares for Chapter 11 proceedings

  Franchise Group announced on November 2, 2024, that it was preparing to file for Chapter 11 after losses, rising costs, difficult macroeconomic conditions, and turmoil involving B. Riley Financial.

  BankruptcyOther
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• 2024Franchise Group and affiliates file for Chapter 11

  Franchise Group and all of its affiliated subsidiaries filed for Chapter 11 bankruptcy protection in Delaware on November 3, 2024. American Freight was omitted from the plan to keep the group's brands operating during the proceedings.

  Bankruptcy
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• 2024American Freight liquidation sales begin

  Liquidation sales began on November 5, 2024, after American Freight was excluded from the continuation plan during Franchise Group's bankruptcy proceedings. Stores were expected to close by the end of the year.

  BankruptcyOther
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• 2020Franchise Group acquires American Freight for $450 million

  Franchise Group completed the acquisition of American Freight on February 14, 2020, and combined the business with former Sears Outlet stores under the American Freight name.

  M&A
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• 2014The Jordan Company affiliate acquires American Freight

  An affiliate of private-equity firm The Jordan Company acquired American Freight in October 2014, when the retailer operated 95 stores in 18 states.

  M&A
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1. American Freight