Franchise Group, $2 billion in debt, has struggled under LA-based backer B. Riley Financial.
Franchise Group, the owner of brands including the Vitamin Shoppe, Buddy’s Home Furnishings and Pet Supplies Plus, filed for bankruptcy protection after months of losses and turmoil surrounding its backer B. Riley Financial Inc. By Eliza Ronalds-Hannon, Reshmi Basu and Jonathan Randles | Bloomberg
FRG said in a statement it has struck a deal with lenders that own most of its senior debt. Under the proposal, which must be approved by a bankruptcy judge, supporting lenders have agreed to swap out first lien debt for 100% of the equity in the reorganized business. Kahn has categorically denied wrongdoing or any knowledge of misdeeds by the managers of Prophecy, and said he was among those who were defrauded as a result of Prophecy’s demise.
FRG said Sunday that the first lien lender group agreed to provide the company with $250 million in Chapter 11 financing. The financing, along with cash already on hand, will provide the business “with ample liquidity to maintain operations across its businesses and fulfill go-forward commitments to employees, customers, vendors, franchise partners, and other stakeholders,” according to the statement.
Nomura Holdings Inc. also helped arrange the FRG deal last year by providing a $500 million term loan to B. Riley. The Tokyo-based lender received shares in FRG and the loan as collateral along with other assets, Bloomberg previously reported.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
B. Riley-backed Vitamin Shoppe owner files for bankruptcyVitamin Shoppe owner Franchise Group, which was taken private by B. Riley Financial in a troubled deal, has filed for bankruptcy but plans to keep operating most of its businesses.
Read more »
The Franchise Group, Parent of The Vitamin Shoppe, Files for BankruptcyThe Franchise Group files for Chapter 11 with a pre-arranged debt-for equity restructuring plan and $250 million in DIP financing.
Read more »
The Vitamin Shoppe reveals secrets and supplements to support longevityReverse aging used to be for A-listers, but this company wants to make it for everyone.
Read more »
List: Hotels with relaxed pet policies and/or waived pet fees across FloridaThe following hotel brands have relaxed pet policies and/or waived pet fees across all Florida Locations.
Read more »
Heartbroken pet owner scammed by person who claimed they had her lost dogA woman whose dog went missing from her Monterey Hills home is warning other pet owners not to fall for scammers who claim they have their missing pet.
Read more »
Rabid Skunk Killed By Dog In New Jersey, Owner's Pet Safe Thanks To VaccinationA skunk recently killed by a dog in Gloucester Township, New Jersey, tested positive for rabies. Luckily, the dog owner had proof of their pet's up-to-date rabies vaccination, ensuring their safety. Officials advise residents to keep pets vaccinated and avoid contact with wild animals.
Read more »