American Freight – a discount home-goods chain with ties to Sears Outlet stores – is shutting down, closing all 15 California locations.
Liquidator Hilco Consumer-Retail announced the shuttering of 328 locations nationwide and the start of store-closing sales for outlets that sell furniture, appliances and mattresses.
“Our goal is to deliver outstanding value to customers during this full-chain closing sale,” said Hilco CEO Ian Fredericks in a statement. “Everything is on sale and must be sold, and we recommend shopping early for the best selection.”
The California closures:
18714 S. Gridley Road
1208 Magnolia Ave.
4150 Shaw Ave.
8805 Murray Drive
1800 Prescott Road
2505-B Vista Way
2401 S Vineyard Ave.
320 West Rancho Vista Boulevard
10379 Folsom Boulevard
1200 Blumenfeld Drive
1210 W Morena Boulevard
1936 West 140th Ave.
1430 South Village Way
3610 Torrance Boulevard
728 South Orange Ave.
American Freight suffered from three broad economic problem spots – a weak housing market, financial stress for lower-paid households, and debt-laden companies.
The home goods industry has been hurt in recent years by high mortgage rates. Costly financing cut house-related shopping due to steep drops in homebuying and home remodeling.
Also, many merchants targeting bargain shoppers have been troubled of late due to the numerous economic challenges faced by lower-income households.
Plus, American Freight’s headaches were amplified by its owner’s financial issues.
American Freight began in Lima, Ohio, in 1994. As it grew, it attracted several owners, the latest being Los Angeles-based Franchise Group, who bought it in 2020.
Franchise Group bought the Sears Outlets and its sister company, Buddy’s Home Furnishings, in the previous year and then merged the American Freight and Sears Outlets chains.
But Franchise Group, which owns brands including Vitamin Shoppe and Pet Supplies Plus, could not meet loan payments on $2 billion in debts it used to acquire its collection of retail chains. Earlier this month, it filed for bankruptcy protection after huge losses and managerial turmoil surrounding its financial backer, B. Riley Financial Inc.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]
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