Ohio-based furniture store to lay off more employees at its Delaware headquarters
DELAWARE, Ohio (WCMH) – An Ohio-based furniture store plans to implement a second round of layoffs at its headquarters, with the total number of affected workers now exceeding 100.
American Freight announced on Nov. 6 that its 328 locations across 41 states will permanently shut down. The news came after its parent company, Franchise Group, filed for Chapter 11 bankruptcy on Nov. 3. The company cited “sustained inflation and macroeconomic challenges” as reasons for the filing.
The retailer filed a WARN notice with the state on Dec. 2, conveying its plans to permanently close its headquarters at 109 Innovation Court and lay off 62 employees. An additional notice filed last week revealed another 50 workers will be laid off, bringing the total number to 112.
The first round of layoffs is set to occur on Feb. 3, and the second round on March 1. The company cited “poor financial performance” as the reason for the layoffs. More corporate positions -- including an HR manager, marketing content writer and director of facilities -- are among those that will be terminated.
Franchise Group stated in a news release that the American Freight closures are part of a strategy to set up other brands in its portfolio — specifically Pet Supplies Plus, Vitamin Shoppe and Buddy’s Home Furnishings — for long-term success.
The furniture store began holding “going out of business” sales at its locations across the country in November. The sales remain ongoing at some locations, but stores that remain open are reaching their “final days,” according to posts on American Freight's Facebook page.
At the time the sales were announced, the brand had 26 locations across Ohio. Of four total central Ohio locations, two Columbus stores have already shut down, consisting of those located at 5055 E. Main St. and 900 Morse Road. Locations at 2885 Gender Road in Reynoldsburg and 1141 Columbus Pike in Delaware are still holding sales, according to the furniture brand's website.
American Freight was established in Lima, Ohio, in 1994 and offers “affordable, high-quality furniture, mattresses and appliances,” according to its website.
Franchise Group acquired Sears Hometown and Outlet Stores in 2020, merging it with the American Freight brand and converting it to that name. While Franchise Group acquired Sears Hometown and Outlet Stores, Sears is owned by a separate company and still has a handful of remaining locations in the country, none of which are in Ohio.